Fluor Settles Hanford Lawsuit; Denies Any Wrongdoing
IRVING, Texas -- April 1, 2013
Today, Fluor Corporation (NYSE: FLR) settled a lawsuit brought by a qui tam
relator under the False Claims Act arising from Fluor's management of the
Hazardous Materials Management and Emergency Response (HAMMER) facility. The
U.S. Department of Energy (DOE) commissioned HAMMER for the training of
emergency first responders. Fluor Hanford, Inc., a Fluor subsidiary, managed
the HAMMER facility under a 1996 - 2009 DOE contract. The lawsuit alleged that
Fluor improperly billed the Department for costs incurred to market the HAMMER
facility for training of other government agencies.
Fluor maintains that the Company did nothing wrong nor unlawful: no false
claims were submitted to the government and no lobbying or other laws were
violated. To the contrary, Fluor Hanford's contract with the Department of
Energy obligated the Company to encourage other government agencies to use the
HAMMER facility to "increase economies of scale and promote more
cost-effective operation and maintenance" and to promote HAMMER's use by these
additional agencies to reduce the facility's funding requirements (thereby
reducing costs to taxpayers). Fluor was prepared to prove that the use of
consultants to contact other government agencies to market the HAMMER facility
was fully known to and overseen by ranking Department of Energy officials, who
themselves were involved in meetings and communications with the consultants,
and other government agencies, and that there was nothing improper about these
marketing efforts by either DOE or Fluor.
Fluor takes pride in the fact that the company is well regarded in both
government and commercial contracting for its leadership stance on ethical
business conduct. Although Fluor strongly disagrees with the lawsuit's
allegations and the government's position in this matter (and Fluor
specifically denies any illegal or improper conduct in the settlement
agreement), Fluor's management nevertheless elected to accept the government's
proposed settlement of this case for the payment of $1.1 million, in the
belief that the avoidance of the expense and distraction of litigation is in
the Company's best interests.
About Fluor Corporation
For more than 100 years, Fluor Corporation (NYSE: FLR) has partnered with its
clients to design, build and maintain many of the world's most challenging and
complex capital projects. Through its global network of offices on six
continents, more than 40,000 employees provide comprehensive capabilities and
world-class expertise in the fields of engineering, procurement, construction,
commissioning, fabrication, operations, maintenance and project management.
Today, the company serves a global client base in the energy, chemicals,
government, industrial, infrastructure, operations & maintenance,
manufacturing & life sciences, mining, power and transportation sectors.
Headquartered in Irving, Texas, Fluor ranks 124 on the FORTUNE 500 list and
had revenue of $27.6 billion in 2012. For more information, visit
Keith Stephens, 469-398-7624
Brian Mershon, 469-398-7621
Ken Lockwood, 469-398-7220
Jason Landkamer, 469-398-7222
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