The Navy requires that the steel meets certain standards for strength and toughness to ensure that it does not fail under certain circumstances, such as a collision. For 30 years, the [foundry], produced castings, many of which had failed lab tests and did not meet the Navy’s standards. [The foundry's] Director of Metallurgy, falsified test results to hide the fact that the steel had failed the tests. [She] falsified results for over 240 productions of steel, which represent a substantial percentage of the castings [the foundry] produced for the Navy.
Court filings indicate there is no evidence that [foundry]’s management was aware of the fraud until May 2017. At that time, a lab employee discovered that test cards had been altered and that other discrepancies existed in [the foundry]’s records.