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Kentucky uranium plant

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   http://www.courier-journal.com/localnews/2001/03/31/ky_uranium.html

http://www.courier-journal.com/localnews/2001/03/31/ky_uranium.html

U.S. talks of settling uranium-plant suit
Whistle-blowers claimed company hid problems
By JAMES MALONE, The Courier-Journal



A C-J in-depth look: The Paducah Gaseous Diffusion Plant
PADUCAH, Ky. -- Federal prosecutors disclosed yesterday that they have held settlement discussions with Lockheed Martin, the defendant in a whistle-blower lawsuit filed by three current and former workers at the Paducah Gaseous Diffusion Plant and an environmental watchdog group.

Assistant U.S. Attorney Bill Campbell said prosecutors have had two meetings with lawyers for Lockheed Martin, a government contractor that formerly operated the plant for the U.S. Department of Energy.

The plaintiffs claim Lockheed concealed from the federal government the level of contamination and radiation at the plant to qualify for millions of dollars in contract bonuses. The Justice Department has been investigating the allegations for nearly two years as it considers whether to join in the lawsuit against Lockheed.

Campbell said the department yesterday sought another 75-day extension from U.S. District Judge Joseph McKinley of Owensboro before it announces whether it will join in the lawsuit, which was filed in June 1999. Campbell said he thinks it's the last extension the government will seek.

The lawsuit seeks unspecified millions of dollars from Lockheed Martin, which with its corporate predecessor Martin Marietta ran the uranium enrichment plant near Paducah for about 15 years. Lockheed has denied wrongdoing.

Discussions with Lockheed's lawyers "are part of the normal process to discuss concerns and hear from the defendants what their points are," Campbell said in a telephone interview.

"The United States believes further discussions will be useful," the motion for an extension said.

The motion also says the government has sought to include in settlement talks lawyers with other lawsuits pending against former plant operators. Thus far, those efforts "have not borne fruit," Campbell said in his motion.

One lawsuit seeking class-action status has asked for $10 billion for hundreds of former workers, their families and heirs. Another is seeking damages for property owners around the site.

The Justice Department has said its probe of the Paducah plant is the most extensive investigation it has ever carried out in Kentucky. Federal prosecutors, FBI agents and other government investigators have interviewed hundreds of people, examined millions of pages of documents and carried out four excavations looking for old dumping grounds.

In the motion, the government sought to defend the pace of its investigation, noting that it has moved faster than most similar probes. The government "has worked diligently to ensure that its investigation is not unduly prolonged," the motion said.

During the final 75 days, the government needs to wrap up witness interviews and assessment of documents, Campbell said in the interview. Also, new allegations have been made to the government, which are being assessed, he said.

During the 20-month investigation, documents have continued to be discovered and some documents have not been produced, the motion said.

Under federal law, the plaintiffs who bring the complaint are entitled to a percentage of any fees recovered. If the government intervenes, it also would be entitled to a percentage of any damages awarded.




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