The Northrop Grumman Corp. will pay $5.2 million to settle allegations of fraud related to the topcoat paint used on the B-2 bomber. The aerospace manufacturer failed to fully disclose to the U.S. Air Force cohesion problems with the topcoat following tests of the B-2 in 2002, according to the U.S. Attorney’s office in Los Angeles. The stealth aircraft was assembled in Palmdale at Plant 42 and continues to use Northrop’s Plant 42 facility for maintenance and repair. During the July 2002 test flight, strips of the topcoat paint peeled off the aircraft. The topcoat was removed from two aircraft and the original paint restored. The U.S. Attorney’s office in Los Angeles started the investigation into Northrop violating the False Claims Act. Taking part in the probe were agents from the Air Force Office of Special Investigations and the Defense Criminal Investigative Service. Northrop cooperated with the investigation and acknowledges no wrongdoing as part of the settlement. Shares in Northrop closed down at $64.36. Mark R. Madler
