Hitachi Nuclear Energy to Settle False Claims for $2.7M
General Electric Hitachi Nuclear Energy Americas LLC (GE Hitachi) has agreed to pay $2.7 million to resolve allegations under the False Claims Act that it made false statements and claims to the Department of Energy (DOE) and the Nuclear Regulatory Commission (NRC) concerning an advanced nuclear reactor design, the Department of Justice announced today.
GE Hitachi allegedly made false statements to the NRC and the DOE about a component of the advanced nuclear Economic Simplified Boiling-Water Reactor (ESBWR) known as the steam dryer. A steam dryer removes liquid water droplets from steam produced by the nuclear reaction that generates electricity in boiling-water type reactors. The NRC requires that applicants for nuclear reactor design certification demonstrate that vibrations caused by the steam dryer will not result in damage to a nuclear plant. The government alleged that GE Hitachi concealed known flaws in its steam dryer analysis and falsely represented that it had properly analyzed the steam dryer in accordance with applicable standards and had verified the accuracy of its modeling using reliable data.
GE Hitachi received funding from the DOE to cover up to half of the cost of developing, engineering and obtaining design certification for the advanced nuclear ESBWR. The NRC, which regulates the civilian use of nuclear power, is responsible for determining whether to approve GE Hitachi’s application for the reactor design certification. The NRC is still reviewing the application and has not reached a final decision on the certification.
The lawsuit was originally filed by LeRay Dandy, a former GE Hitachi employee, under the whistleblower provisions of the False Claims Act. The False Claims Act allows private parties with knowledge of fraud against the government to sue on behalf of the government and share in the recovery. Dandy’s share of the settlement has yet not been determined.
The Chanler Group, in association with the Hirst Law Group, represents whistleblowers who take action under the False Claims Act to report fraud committed against the federal and state governments. We have years of experience representing whistleblower clients who expose every kind of fraud against the government, including health care fraud, contract fraud, and tax fraud. Read more about our expertise in False Claims Act cases and how you can take action.