A federal judge signed off Wednesday on a $57 million settlement with a Navy contractor accused of faking radiation tests at a former San Francisco shipyard—fraudulent work that was supposed to prove the land safe for more than 10,000 new homes.
U.S. District Judge James Donato approved the deal with Tetra Tech EC, ending a fraud case that exposed how the company allegedly falsified soil samples during a $1 billion cleanup of the Hunters Point Naval Shipyard. Four whistleblowers who brought the case will split $12 million—21% of the settlement—for exposing the scheme.
Whistleblowers Flagged Fake Decontamination Data
The fraud came to light in March 2013 when four former workers—Elbert Bowers, Arthur Jahr III, Archie Jackson, and Susan Andrews—filed suit under the False Claims Act. They accused Tetra Tech EC of systematically rigging radiation tests meant to certify the 400-acre former military site was clean enough for residential development.
The government intervened in the case, taking over prosecution while the whistleblowers remained parties. Tetra Tech EC is a wholly owned subsidiary of Tetra Tech Inc., a major defense contractor.
What Happens to the Shipyard Development
Judge Donato called the settlement “fair, adequate, and reasonable” in his four-page order, noting no one objected. But the ruling doesn’t answer the question thousands of prospective homebuyers are asking: Is the land actually safe?
The Hunters Point site has been at the center of San Francisco’s redevelopment plans for years. If the soil testing was fabricated as alleged, the Navy and city officials may need to verify decontamination all over again—a process that could delay or derail housing construction on land where Bay Area families desperately need it.
The settlement resolves only the fraud claims against the contractor. It doesn’t determine whether radiation remains in the ground, or who will pay to redo the work if it does.
Key Points
- Tetra Tech EC will pay $57 million to settle accusations it faked radiation tests during a $1 billion Navy shipyard cleanup
- Four whistleblowers will receive $12 million for exposing the fraud under the False Claims Act
- The settlement doesn’t address whether the San Francisco land—planned for over 10,000 homes—is actually safe for development
https://www.courthousenews.com/judge-greenlights-navy-contractors-57-million-settlement-resolving-environmental-fraud-claims/ – August 13, 2026
