A business owned by the Spirit Lake Nation of North Dakota has agreed to pay $1.9 million to settle a False Claims Act lawsuit.
Sioux Manufacturing Corp. was accused by former employees of failing to properly make
protective material for military helmets used by soldiers in Iraq and Afghanistan.
No soldiers were injured but a federal investigation found some materials did not comply with military standards.
SMC denies all the allegations but agreed to settle the case. Of the $1.9 million, $406,350 will go to the two former employees who filed the lawsuit.
SMC's offices were raided by federal agents in June 2006 as part of the investigation. The firm's revenues recently topped $20 million, mainly due to work related to the wars in Iraq and Afghanistan.
Get the Story:Spirit Lake Tribe Settles Kevlar Case (AP 12/18)
Press Release: SIOUX MANUFACTURING CORPORATION PAYS $1,935,000 TO SETTLE FALSE CLAIMS ALLEGATIONS (USDOJ 12/18) $rl Sioux Manufacturing Corp - http://www.siouxmanufacturing.com
Spirit Lake Nation - http://www.spiritlakenation.com Related Stories:
Spirit Lake Sioux firm wins military contract (11/14)
Spirit Lake Nation business raided by armed agents (6/22)
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N.D. tribe's business sees boost during war (03/28)
N.D. tribe makes military equipment (11/19)
