U.S.A./Colunga v. Hercules, Inc., et al.

The largest settlement ($55,000,000) in the history of the False Claims Act where the Government did not intervene in the action, and was larger than all the prior such settlements combined. This Qui Tam action filed in the U.S. District Court in Utah involved an action in the name of the U.S. Government for damages arising from the falsification of manufacturing and inspection records on nine solid fuel motor rocket systems [Trident I, C-4; Trident II, C-5; Titan IV, Delta, Pershing II, Sram, MX - Peacekeeper; Pegasus, and ICBM] over a ten year period.

Facts and Background:
This Qui Tam action filed in the U.S. District Court in Utah involved an action in the name of the U.S. Government for damages arising from the falsification of manufacturing and inspection records on nine solid fuel motor rocket systems [Trident I, C-4; Trident II, C-5; Titan IV, Delta, Pershing II, Sram, MX - Peacekeeper; Pegasus, and ICBM] over a ten year period. Out of a population of 3,300 motors, we exhaustively reviewed the inspection records of a sample of 630. That review, coupled with the testimony of fourteen former employees and sixteen experts led to the largest settlement ($55,000,000) in the history of the False Claims Act where the Government did not intervene in the action, and was larger than all the prior such settlements combined. It occurred following a one and one-half month pre-trial, including extensive in limine motions. See related decisions of United States of America/ Colunga v. Hercules, Inc. 929 F.Supp. 1418 (1996); U.S.A., ex rel. Colunga v. Hercules, Inc. 1998 WL 310481 (D.Utah)(1998).

Plaintiff's Contentions, Allegations:
Defendant falsified manufacturing and inspection records on nine solid fuel motor rocket systems [Trident I, C-4; Trident II, C-5; Titan IV, Delta, Pershing II, Sram, MX - Peacekeeper; Pegasus, and ICBM] over a ten year period.

Notes:
See related decisions of United States of America/ Colunga v. Hercules, Inc. 929 F.Supp. 1418 (1996); U.S.A., ex rel. Colunga v. Hercules, Inc. 1998 WL 310481 (D.Utah)(1998).

Settlement Amounts: $55,000,000.00

Attorney for client:
Michael T. Thorsnes Co-lead counsel with Lon Packard, Esq., Salt Lake City, Utah Co-counsels: Partner Daral Mazzarella, Esq., San Diego, CA; Von Packard, Esq. and Ron Packard, Esq., Palo Alto, CA; Craig Johnson, Esq., Salt Lake City, Utah; James Wagstaffe, Esq., San Francisco, CA; Opposing counsel: Randy Dryer, Esq., Salt Lake City, Utah; Robert Huffman, Esq., Washington, D.C.