Grenade Makers Attempt to Defuse False Claims Act Charges Denied

Last week, United States District Judge Steve Merryday upheld Relator John King’s amended qui tam Complaint against grenade manufacturer DSE, Inc. and its subcontractors Kaman Precision Products, GTI Systems, and JKS Industries.  Mr. King, a former employee at DSE, alleges that the company terminated him from the position of quality-assurance manager when he refused to certify the quality of defective grenades that either exploded prematurely or failed to explode at all.

According to the Complaint, DSE and its subcontractors cut corners on quality control in order to meet production deadlines for the U.S. government.  Judge Merryday ruled that the allegations in the amended Complaint were sufficient “to allege that each defendant knowingly participated in a scheme to provide substandard grenades to the United States Armed Forces.”

Judge Merryday also rejected subcontractors’ argument that Mr. King could not have known about their quality control processes because he worked for DSE, and not the subcontractors.  While he did not observe the subcontractors’ work first-hand, the Court held it was sufficient that Mr. King inspected the final product and found it defective.

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