La. shipyard settles 'False Claims' suit for $8.5 million
NEW ORLEANS - The U.S. Justice Department says a Louisiana ship building company will pay more than $8 million to settle a 2011 lawsuit arising from modifications made to vessels for the Coast Guard.
The lawsuit alleged that Bollinger Shipyards of Lockport made false statements about the strength of eight patrol boats it had lengthened for the Coast Guard. The lawsuit states that the hull of one of the vessels, the Matagorda, buckled at sea in September 2004.
The Coast Guard revoked its acceptance of all eight ships in 2007; the Justice Department sued in 2011 under the federal False Claims Act.
A copy of the settlement released Wednesday says Bollinger does not admit any liability in the civil case; the government doesn't concede that its claims were not well-founded.