FOR IMMEDIATE RELEASE CIV MONDAY, NOVEMBER 20, 1995 (202) 616-2765 TDD (202) 514-1888 AUBURN, N.Y., FIRM PAYS U.S $600,000 TO SETTLE DEFENSE CLAIMS WASHINGTON, D.C. -- SL Auburn Inc. of Auburn, New York, and its parent, SL Industries Inc., have agreed to pay the United States $600,000 to settle allegations SL Auburn manufactured defective and substandard tank and aircraft engine igniters under Department of Defense contracts, the Department of Justice announced today. Assistant Attorney General Frank Hunger of the Civil Division said the agreement settles a qui tam suit filed by a former SL Auburn employee, Edward J. Dyman, April 25, 1994, in U.S. District Court in Albany, N.Y., and resolves any potential liability of SL Industries and SL Auburn. The Department alleged that SL Auburn improperly used a kerosene-graphite slurry on igniters that failed required electrical tests to artificially increase the conductivity of the igniters to make sure they passed the tests. SL Auburn officials also allegedly retrieved scrapped igniters and shipped them to the Defense Department to meet inventory shortfalls. The practices continued for 10 years. Under the settlement, SL Auburn agreed not to ship scrapped products to the government in the future or use the kerosene-graphite slurry during testing unless expressly permitted. "This settlement reflects the government's continued determination to vigorously prosecute cases involving the provision of goods that have not been tested in full conformity with applicable product requirements and government contracts," said Hunger. The Navy used the igniters in T-56 engines used in the P-3 Orion anti-submarine warfare aircraft. The case was investigated by the Washington, D.C., and Albany, N.Y., offices of the Navy's Criminal Investigative Service; and the Syracuse offices of the Army's Criminal Investigative Service; the Air Force's Office of Special Investigations; and the Defense Criminal Investigative Service. Dyman will receive $144,000 for bringing the case to the attention of the United States. Under the qui tam provisions of the False Claims Act, a private party can file a suit on behalf of the United States and receive a portion of the damages if the government takes over the case and prosecutes it successfully. ##### 95-585