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Old Claims Follow Hawker Beechcraft in Bankruptcy

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A long-running legal fight involving allegations that Wichita, Kan.-based Hawker Beechcraft made false statements and misrepresentations in the sale of military aircraft to the United States is now dogging the company’s bankruptcy proceedings, the Associated Press reported yesterday. Former employees of a subcontractor of Hawker Beechcraft sued the company more than five years ago under the False Claims Act, which allows citizens to bring claims on behalf of the government. The complex case has yet to be resolved. When Hawker Beechcraft filed for bankruptcy protection in May, those court proceedings were halted. But plaintiffs Donald Minge and David Kiehl last week asked the bankruptcy court to find that their claims are not dischargeable in bankruptcy. They argued that because they are prosecuting the false actions claim on behalf of the government, the debt is owed to “a domestic governmental unit.” They are also seeking costs and attorney fees.