4/17/18: Some compliance failures have far greater impact than others in the world outside a company’s walls. This one does. A Japanese fiber manufacturer and its US subsidiary entered a settlement agreement to pay $66 million to resolve claims under the False Claims Act. According to DOJ’s allegations, the company sold defective Zylon nylon to federal, state, local and tribal agencies for use in bulletproof vest. DOJ alleges that the company knew about defects in the fiber but continued to market it. Part of a larger investigation into the supply chain that eventually produced the material and vests, the settlement’s $66 million is added to another $66 million already recovered by DOJ in related cases.
Compliance Communications Blog
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Apr 17, 2018 - Compliance Wave
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