August 7, 2007
The Crane Company has agreed to pay $7.5 Million Dollars to settle qui tam claims filed by a former company employee, Walter Klepacz.
Crane Co. manufactures and sells valves to both the military and commercial customers. These include high-end valves which Crane sells to the U.S. Navy, for use on U.S. Navy vessels.
Mr. Klepacz was formerly employed by Crane a quality assurance manager.
The allegations asserted by Mr. Klepacz, were that Crane allegedly manufactured and sold valves to the Navy which were manufactured with substandard metal susceptible to corrosion, and failed to conduct critical inspections of the valves.
As a result of having filed a qui tam action to expose these allegations, Mr. Klepacz is expected to receive up to $1.8 Million Dollars, as a reward.
See U.S. Dept of Justice Press Release 8/07/07