Northrop Grumman had agreed to pay $12.5 million to settle charges it made false claims concerning electronic components, said the U. S. Department of Justice.

It has further been reported that the government alleged the company failed to properly test electronic parts used in navigation systems for military planes, helicopters, submarines and equipment sent into outer space.

Tony West, assistant attorney general for the Justice Department's civil division, said in a statement released on Wednesday, "Companies that do business with the government must comply with all of their obligations."

It has further been reported that the fraudulent claims were brought to light by a whistle-blower, Allen Davis, who worked as a quality control manager at Northrop's Navigation Systems Division in Salt Lake City. His portion of the settlement comes to $2.4 million. (With Inputs from Agencies)