Huntington Ingalls Industries has disclosed that a federal civil investigation has begun into allegations that its former parent, defense giant Northrop Grumman Corp., improperly used Hurricane Katrina relief funds to recover shipbuilding costs. In its latest quarterly filing with the Securities and Exchange Commission, Huntington Ingalls says it is cooperating with the investigation. According to the filing, Huntington Ingalls is targeted by a whistleblower suit filing asking for at least $835 million. The company denies the allegations. Huntington Ingalls says the Justice Department has not decided whether to pursue the suit. The filing does not disclose what shipyards may be involved. Huntington Ingalls owns shipyards in Pascagoula, Miss., and New Orleans.
Shipbuilder reveals it’s under federal civil probe
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