THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Tuesday, November 28, 1995 TAG: 9511280345
SECTION: BUSINESS PAGE: D2 EDITION: FINAL
TYPE: DIGEST
LENGTH: Short : 26 lines
The Justice Department said McDonnell Douglas Corp. and General Dynamics Corp. withheld key details about the canceled A-12 bomber. While the government says the companies should pay $1.4 billion in penalties for not doing work the Navy had ordered, the companies insist the government owes them about $2 billion for A-12 development work. U.S. Court of Federal Claims Court Judge Robert Hodges Jr. agreed last year that the Pentagon's handling of the A-12 cancellation was improper, and in a trial that opened Monday will decide whether the companies themselves were inept in trying to carry out the contract. The Justice Department contends that the companies are to blame for the A-12 cancellation and that the $2 billion they seek would be an unacceptable financial windfall. (Bloomberg Business News)
KEYWORDS: U.S JUSTICE DEPARTMENT TRIAL by CNB