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Rolls-Royce must face whistle-blowers’ lawsuit

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Rolls-Royce Corp. lost a bid Monday for dismissal of a whistle-blower lawsuit pressed by two former quality-control officers claiming the company cheated the United States by failing to report defense-contract product defects.

U.S. District Judge William T. Lawrence in Indianapolis ruled plaintiffs Thomas McArtor and Keith Ramsey could proceed on two of their four theories of liability.

McArtor and Ramsey claim Rolls-Royce induced the U.S. to enter into about 180 aircraft engine contracts from 2003 to 2006 by hiding its failure to comply with a required quality-assurance plan, failing to disclose defects and concealing those practices to maintain a third-party certification needed to keep existing contracts and obtain new ones.

“As a result of RRC’s concealment efforts,” Lawrence said, citing the McArtor-Ramsey allegations, “the recertification auditor did not discover most of the violations.”

The suit was filed in 2008 and unsealed after the U.S. declined to intervene in 2010.

Lawrence rejected the plaintiffs’ theory that the company could be liable for reverse false claims for allegedly failing to tell the U.S. of defects to avoid having to pay refunds or issue replacement parts. The men hadn’t shown such claims were anything more than conjectural, he said.

“RRC is required to pay the government or otherwise make concessions if and only if the government so chooses,” the judge said.

Joel Reuter, a spokesman for the Indianapolis-based unit of Rolls-Royce Holdings Plc, said he couldn’t immediately comment on the court’s decision. Rolls-Royce has more than 2,000 employees in Indianapolis. The parent company is based in London.

“Thousand of engines in military aircraft are potentially affected,” according to a revised complaint filed in November 2011, including the F-35 joint-strike fighter plane, C-130 Hercules transports and the V-22 Osprey, a plane capable of vertical lift-off.

The men, who are suing on behalf of the U.S., seek an $11,000 penalty for each false claim and each false statement the company made to the Defense Department, plus three times the amount of payments received or costs avoided. McArtor and Ramsey are seeking 30 percent of any such recovery for themselves.

McArtor, who filed the initial complaint, worked for the company from 1994 to 2006, serving as a senior quality assurance manager and airworthiness coordinator when he was allegedly forced out for reporting fraudulent conduct.

Ramsey, who joined the case after it was unsealed, served as a quality engineer from August 2002 to March 2006 when, he said, he was fired for refusing to cooperate with quality-control plan deviations.

The men said in an amended complaint filed in November that they didn’t know each other before to the litigation.

“Rolls-Royce is finally out of options for avoiding these serious, safety-related allegations,” plaintiffs’ lawyer Michael Kanovitz of Chicago-based Loevy & Loevy said in a press statement issued after Lawrence released his ruling.

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  1. liek the rest of America

  2. These quaint,obsessed musings by the stalkers are certainly entertaining, but I'm trying to figure out what, if anything, all the yelping below has to do with Zak Brown.

  3. It's evident that Moffett was pushing the right buttons and corporate America is now trying to squash him. He just wanted to withdraw the free pilot services provided to the company by the pilots to try and put some pressure on a company that has not been interested in negotiating a contract in over 5 years. The company does not provide a contract because not having one has saved them a bundle of money. Shame on any Republic pilots not standing behind their union leader just because things are getting tough, can you not see such strategic moves by the company as putting the last union president in a corporate position and into THEIR pocket. Do you really believe the last union president is so appalled at the attempts by Moffett, do you not remember his oppositions to the company? We stood behind him. It has been proven over and over again for thousands of years without fail, a man cannot serve two masters. Anyone that believes people vote contrary to their paycheck and livelihood deserve to be taken advantage of, the recent statements by the former union president are laughable as he denounces the current union president from his new corporate position. Have you ever seen a drafted sports player score points for his previous team, it cannot be done, he is not on the pilots side anymore, he gets his money a different way now than you and I do, and he should not be allowed to remain on the seniority list. A drafted player brings strength, credibility, tactical knowledge, and a strategic advantage to his NEW team, he would not be drafted or paid were it otherwise. We are all forced to choose only one side to play for and support, not doing so has many references in life such as insider trading and shaving points, all illegal for good reason. This basic fact is why corporate moguls, scientist, and engineers all sign non-discloser agreements and non-compete clauses, as protection in case they are lured into switching sides as our former union president has done. No NFL coach ever drafted a player so that both teams could benefit and better understand each other, they are recruited to win the game against that former team, period. Likewise the company does not recruit the former union president by accident or mutual understanding, its strategy. Don't confuse playing the game with good sportsman-like conduct in support of common business and prosperity goals, with the requirement to only play for one side. Good men we all love and favor fall subject to this manipulation, often without their knowledge, and it is not a betrayal of their friendship to oppose them when they switch sides. If we did not love and trust them, they would not have been chosen and lured to the other side in the first place. The deception by the drafted player is not made at a conscious level, it's just human nature and it's all about money and power which corrupts our ability to be objective and loyal to two masters. This is why our court system created the defense attorney, and why our military created counter intelligence. Its strategy and its propaganda, and it works, and that's why the "powers to be" manipulate the chess pieces by sometimes changing their colors. Some players know they are being manipulated when their color is changed, but it brings them more money and power so they do not care. The rest have good intentions but do not even realize they are being manipulated. This tactic is also known by another name, Divide and Conquer. In battle sending an imperfect message with an imperfect team is obviously not ideal, but it's still being sent by YOUR team, your union leader, a leader that has common goals and common rewards with you, they are the best, because we have elected them to do a job for us. If you are not backing Moffett but believing the spin by those that have recently switched sides, you are taking food out of your own mouth. Showing unity and backing an imperfect situation still results in taking just as much ground, it's about unity and bargaining power. It's not necessary to wait around for that perfect attack because it will never come, the company will spin and attempt to destroy anyone that gets in their way. Ultimately it's not about any specific attack anyway, ASAP or whatever it makes no difference, it is and always has been only about power. If this company cared about safety it would not build pairings with 8 hour overnights, come on, are you that naive? Besides, do you really think Hoffa cares, no, he got a call from corporate America and was squeezed into denouncing Moffett. If he didn't they would spin the safety card against him and the Teamsters National with implication for truckers, future contracts, insurance rates etc...saying something like the Teamsters use safety as a bargaining chip, blah blah blah... Do you really think any pilot is going to do something unsafe for the contract, absolutely not, the only ones threatening safety here is the company with reduced rest, fatigue, and poverty. Do you not find it odd that Hoffa and the Teamsters are opposing a Teamster president publicly? Would the Teamsters National not normally support and work with one of their own? Why did they not sit down and help him strategize, correct any mistakes, and charge ahead? Would the Teamsters National not normally support and leverage a contract for all those pilots that have been paying Teamster dues, isn't that why we have all been paying Teamster dues in the first place? I sure haven't been paying dues so that the Teamsters National could come along and write this kind of an article undercutting our union leader and our unity. Whose side is the Teamsters National really on, it's obviously not the Republic pilots side.

  4. No matter what Moffatt does the company is going to spin it like he is the terrorist and brainwash people like you into believing it, wake up, back your players that are trying to change things for you and your livelihood. Where has Hoffa been for the last 6 years, except collecting our dues. Seriously, do you really think an FO going for upgrade, signed off by a checkairman ready for the upgrade, who then fails, is not even capable of returning as a First Officer.

  5. whoa!

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