Key Art Banner

Northrop Grumman Statement On Whistleblower Case That Took Over 17 Years To Settle

Northrop Grumman comments on James Holzrichter’s False Claims Act Suit
Posted on Jul 27, 2018 | 06:00pm
Northrop Grumman declined an on camera interview with CBS News and instead provided the following statement. Reporting conducted by CBS News is contrary to certain portions of this statement, as CBS News has reported in its broadcast. Specifically, our reporting supports the conclusion that the incidents described by Mr. Holzrichter did, in fact, occur. 

The question of who may have been responsible for those incidents, however, remains unanswered.  Northrop states that it had no involvement in those incidents, and CBS News takes no issue with that portion of Northrop's statement.

Northrop Grumman Statement:
"As described to us, this program relates to a false claims act suit filed about 30 years ago relating to how Northrop Grumman accounted for scrap parts at its facility in Rolling Meadows, Illinois. The company settled the matter in 2005, with no finding or admission of wrongdoing on the part of Northrop Grumman. 

We are informed CBS may also be reporting or implying that Northrop Grumman may somehow have been involved in or even responsible for criminal misconduct, also in the 1990s or early 2000s, related to Mr. Holzrichter. There is no credible or independent evidence to support such inflammatory and irresponsible insinuations.  

Indeed, it is our understanding that Mr. Holzrichter did not even assert many of these absurd and baseless suspicions until 2011, when he published a book and began appearing in various interviews. That was of course six years after the litigation ended and many more years after the underlying conduct allegedly occurred. To our knowledge, Mr. Holtzrichter never raised such allegations with any local, state, or federal law enforcement agency, and, if he ever did, certainly none of them ever pursued the allegations against our company.

Sensationalized and inflammatory assertions or insinuation that Northrop Grumman may somehow have been involved in such alleged criminal misconduct are false and irresponsible."

Watch all-new episodes of Whistleblower on Fridays at 8/7c on CBS and CBS All Access.