After saying the DOJ’s kickback claims were contrived, Lockheed Martin (LMT), a defense contractor, has settled federal charges alleging it paid bribes to win a nuclear waste cleanup contract in the state of Washington. The DOJ accused Lockheed of paying a $1 million bribe to executives at an affiliate who awarded Lockheed a subcontract at inflated rates. The DOJ also claimed Lockheed lied to the Defense Department about the amount of profit it would earn from the sub-contract.

Recently, a federal court dismissed the DOJ’s kickback allegation but not the claim accusing Lockheed of lying about the profitability of the contract. In its Q1 2021 10-Q, Lockheed disclosed it had agreed to settle the suit:

“Under the terms of the settlement, the defendants agreed to pay $6 million to resolve the remaining claims.”

The settlement appears to have generated a handsome ROI as the sub-contract Lockheed was awarded was worth $232 million. It also appears there were no consequences for the executive at the Lockheed affiliate who was accused of taking the $1 million bribe and awarding Lockheed the inflated subcontract. The filing indicates the executive is now a Vice President currently working at Lockheed.