Defense Contractor Agrees to $1.5 Million Settlement Over Non-Conforming Parts Sold to the Pentagon

Washington, D.C.; January 6th, 2026.

The United States Department of Justice announced that Teledyne Electronic Safety Products has agreed to pay $1.5 million to resolve allegations that the company supplied non-conforming safety components to the Department of Defense, conduct the government says violated the False Claims Act.

According to the DOJ, the settlement addresses claims that Teledyne Electronic Safety Products sold parts used in military safety systems that did not meet required contractual and technical specifications, while still certifying those parts as compliant. Federal officials state that the certifications were material to payment decisions, meaning the government relied on those representations when approving purchases.

The allegations center on quality and compliance standards that are required when contractors supply equipment intended for military use. The DOJ emphasized that these standards are not optional, particularly when components are tied to safety systems relied upon by service members and defense personnel in operational environments.

Federal prosecutors noted that the False Claims Act exists specifically to address situations in which contractors knowingly submit false or misleading information in order to receive government funds. The law allows the government to pursue civil penalties and recover damages when federal programs are impacted by improper billing or misrepresentation.

In announcing the resolution, the DOJ reiterated that the settlement does not constitute an admission of liability by Teledyne Electronic Safety Products, but reflects an agreement to resolve the allegations without prolonged litigation. Officials stressed that enforcement actions of this nature are intended both to recover taxpayer funds and to reinforce compliance expectations across the defense contracting sector.

The case was handled by the DOJ Office of Public Affairs, with coordination across civil enforcement divisions responsible for overseeing procurement integrity and contractor accountability. Federal officials stated that protecting the integrity of military supply chains remains a priority, particularly where equipment reliability and personnel safety are involved.

The Department of Justice encouraged individuals with knowledge of fraud involving federal contracts to report concerns through appropriate whistleblower channels, noting that the False Claims Act includes provisions designed to protect and incentivize those who come forward with credible information.

Sources

Primary First-Hand Sources

• UNITED STATES DEPARTMENT OF JUSTICE, Office of Public Affairs press release on Teledyne Electronic Safety Products settlement regarding False Claims Act allegations