Alcatel-Lucent unit settles fraud claim for $4.2 million

WASHINGTON (Reuters) - A subsidiary of Alcatel-Lucent SA has agreed to pay $4.2 million to settle allegations by the U.S. government that it submitted misleading information while working on a military contract, the U.S. Justice Department said on Friday.

The unit, Lucent Technologies World Services Inc, was awarded a $250 million contract in 2004 to design and build an emergency communications system in Iraq, the department said.

(Reporting by David Ingram; Editing by Lisa Von Ahn)