Federal prosecutors said the company submitted misleading test certificates concerning the design and construction of a 911 emergency response system in Iraq.

The Justice Department said it is seeking to recover losses whenever a contractor makes a false claim.

But prosecutors said that was especially critical in "hot spots" like Iraq, where it's hard and dangerous to verify invoices.

The Army awarded Alcatel-Lucent the quarter-billion-dollar contract in 2004. The company's former contract manager blew the whistle and he'll get a share of the settlement.

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