A Decade-Old Supply Chain Decision Ends in a $1.5 Million Settlement for Teledyne Safety Products

Key Takeaways

• False Claims Settlement: Teledyne Electronic Safety Products agreed to pay $1.5 million to resolve allegations tied to non-conforming aircraft components supplied to the U.S. Navy.
• Ejection Seat Components: The case involved Digital Recovery Sequencer units used in ejection seat systems installed on military aircraft.
• Unauthorized Sourcing: The non-conforming microelectronic part was allegedly obtained from a broker that was neither the original manufacturer nor an authorized reseller.
• Supply Chain Integrity: Federal officials emphasized that even technical deviations in defense supply chains can create safety and national security risks.
• Cooperation Credit: Teledyne received formal credit for cooperation, including witness support and information sharing during the investigation.

Deep Dive

Teledyne has agreed to pay $1.5 million to resolve allegations that it supplied the U.S. military with aircraft components that failed to meet contract requirements, according to the Justice Department.

The settlement closes a long-running False Claims Act case centered on Digital Recovery Sequencer units, a critical component used in aircraft ejection seat systems. Federal prosecutors alleged that while acting as a subcontractor on U.S. Navy contracts, Teledyne Electronic Safety Products knowingly caused false claims to be submitted by manufacturing DRS units with a microelectronic part that did not conform to specifications reviewed and approved by the Navy.

Those DRS units were delivered between November 2011 and June 2012 and ultimately installed in ejection seat systems used across multiple types of military aircraft. According to the government, the issue traced back to Teledyne’s decision to source the microelectronic part from a third-party broker that was neither the original equipment manufacturer nor an authorized reseller.

While the allegations focus on events more than a decade old, Justice Department officials framed the case as a present-day reminder of the risks that non-conforming components pose within defense supply chains, particularly when safety-critical systems are involved.

“Our military aviators rely on defense supply chains to provide them with equipment that they can depend on, even in the most difficult conditions,” said Assistant Attorney General Brett A. Shumate, adding that suppliers who fail to meet contract specifications will be held accountable.

U.S. Attorney Bryan Stirling echoed that message, emphasizing that service members are entitled to equipment built with the correct, approved parts and that enforcement actions like this one are intended to reduce risks introduced by shortcuts in procurement and sourcing.

Investigators from the Department of Defense Office of Inspector General and the Air Force Office of Special Investigations described non-conforming parts as a broader threat to operational readiness and national security, noting that even small deviations in component sourcing can have outsized consequences when deployed in live aircraft systems.

The settlement resolves civil allegations only and includes no admission of liability. The government did, however, acknowledge that Teledyne Electronic Safety Products took meaningful steps during the investigation that warranted cooperation credit. Those steps included identifying key witnesses, facilitating interviews, and proactively sharing investigative updates with the government and other customers through the Government-Industry Data Exchange Program.

As a result, Teledyne received credit under the Justice Department’s internal guidelines for cooperation in False Claims Act matters.

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