Boeing, General Dynamics agree to $400 million A-12 settlement

WASHINGTON Thu Jan 23, 2014 5:48pm EST

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WASHINGTON Jan 23 (Reuters) - Boeing Co and General Dynamics Corp have agreed to a $400 million deal to settle the last of a series of legal disputes with the U.S. government over its 1991 decision to cancel the A-12 stealth aircraft program, the Justice Department said on Thursday.

Under the agreement, the two weapons makers will each provide the U.S. Navy with $200 million in aircraft or services, the department said. It said the U.S. government would not pay any money in connection with the companies' claims.

The companies had sued the U.S. government in federal claims court to retain $1.3 billion in contract awards plus over $1 billion in additional sums, plus interest. The case dragged on for 23 years, involving five trials and three appeals, including one to the U.S. Supreme Court.

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