Suit by Hughes Manager Claiming Wrongful Termination Is Tossed Out

A high-level Hughes Aircraft manager, who accused Hughes in a federal lawsuit of defrauding the government of $40 million, has had a second lawsuit alleging wrongful termination thrown out of federal court.

U.S District Judge Stephen V. Wilson Monday dismissed the wrongful termination suit brought last January by William J. Schumer, who had alleged that he was demoted because he refused to participate in illegal activities. Last year, Schumer was moved from division director of contracts at Hughes to assistant division director at another Hughes group.

Schumer last January had filed a suit under the federal False Claims Act, in which he alleged that the company improperly charged $40 million to its cost-plus contracts to develop new radars for the B-2 stealth bomber and F-18 jet fighter.

Dean Francis Pace, Schumer’s Los Angeles attorney, said Schumer will appeal the ruling in which Hughes was granted summary judgment by Wilson.

Meanwhile, the Justice Department is still considering whether to join in the prosecution of Schumer’s False Claims Act case, Pace said. Under the False Claims Act, individuals can sue on behalf of the federal government, and the Justice Department can join in the prosecution.