Federal News
DoJ Settles $10.5M Fraud Claims Against SC Navy Contractor
March 17, 2026
The U.S. Department of Justice has settled False Claims Act allegations against W International LLC, its subsidiaries, and CEO Edward Walker for $10.5 million related to overcharging the U.S. Navy and Air Force on weld tables and other equipment used in Columbia-class submarine production. The settlement resolves claims of inflated pricing, false labor charges, and bid rigging that impacted Navy submarine construction and raised concerns about worker safety and taxpayer funds. This case highlights ongoing federal scrutiny of defense contractors' compliance with contract pricing and billing requirements, particularly in critical naval shipbuilding programs.
- Why this matters: Procurement professionals should note increased DOJ enforcement on defense contract fraud, emphasizing the importance of accurate pricing and billing practices.
- The settlement underscores risks associated with subcontractor and supplier compliance in major Navy shipbuilding contracts, including those involving weld tables and fabrication equipment.
- Contractors and subcontractors working with the Navy and Air Force must ensure rigorous internal controls to avoid False Claims Act violations.
- Organizations involved in naval defense procurement should evaluate their compliance programs and contract oversight to mitigate fraud risks and protect taxpayer interests.
Exploiting the procurement process for our military’s necessary materials unduly increases the burden on taxpayers. We’ll continue to work with our partners to support our service members and protect our taxpayers.
— Bryan P. Stirling, U.S. Attorney for the District of South Carolina
Contractors and subcontractors are expected to charge no more than authorized under their contracts with the military. We will continue to ensure the government gets the prices it bargained for on defense contracts.
— Brett A. Shumate, Assistant Attorney General
The quality of W International’s products 'suffered greatly, which has jeopardized the efficient production of the submarine fleet and jeopardized the lives of workers and sailors.'
— Federal court documents
Agencies
U.S. Navy, Department of Justice, Department of Defense, U.S. Air Force, Naval Criminal Investigative Service
Vendors
W International, W International SC LLC, Precision Metal Equipment Handling LLC, Newport News Shipbuilding
Contracts
$80 million,
Locations
Sources
- Feds unseal $80M whistleblower case against former Lowcountry military contractor · Yahoo Finance · Mar 17
- Feds unseal $80M whistleblower case against former Lowcountry military contractor • SC Daily Gazette · SC Daily Gazette · Mar 17
- Feds settle fraud claims against former Goose Creek military contractor for $10.5 million | News From The States · News From The States · Mar 17
- Office of Public Affairs | W International Companies Agree to Pay $10.5M to Settle False Claims Act Allegations for Overcharging the Air Force and the Navy for Weld Tables | United States Department of Justice · DOJ · Mar 17