Judge awards Raytheon $59.2 million in pension case
(Reuters) - A federal judge awarded Raytheon Co (RTN.N) $59.2 million in a case against the United States to recover pension losses for government contract work associated with a restructuring begun by the defense contractor in 2000.
Judge Nancy Firestone of the U.S. Federal Court of Claims in Washington, D.C. awarded $10.1 million less than the amount Raytheon had sought, according to a 149-page decision made public on Monday.
Raytheon had sued in 2005 after a federal contracting officer denied its claim, saying it had not paid pension deficits it had sought to recover for employees who remained within the Waltham, Massachusetts-based company's pension plans.
Firestone said the government and contractor should "pay their fair shares to ensure that the pension plans at issue are fully funded to meet the promises made to the employee-participants covered by the pension plans."
The judge had issued her decision under seal on June 27.
Raytheon's restructuring involved a sale of four units, and began in the wake of federal rules revisions in 1995 as to how to calculate, allocate and account for pension costs.
A call to the U.S. Department of Justice was not immediately returned. Raytheon spokesman Jon Kasle did not immediately respond to a request for comment.
Lockheed Martin Corp (LMT.N) is the largest U.S. defense company. The Court of Federal Claims hears monetary cases brought against the federal government.
The case is U.S. v. Raytheon Co, U.S. Court of Federal Claims, No. 05-00448. (Reporting by Jonathan Stempel in New York; Editing by David Gregorio)
- Tweet this
- Share this
- Digg this