Summary
This 8-K filing from The Boeing Company (BA) on June 13, 2003, provides an update on a significant ongoing legal and governmental matter. The U.S. Air Force is reviewing Boeing's responsibility as a government contractor due to an incident in 1999 where employees possessed proprietary information belonging to competitor Lockheed Martin Corporation concerning the Evolved Expendable Launch Vehicle (EELV) program. This incident also involves an investigation by the U.S. Attorney in Los Angeles. Further complicating the situation, Lockheed Martin filed a lawsuit on June 10, 2003, alleging violations of federal and Florida law related to the solicitation, acquisition, and alleged concealment of their information during EELV contract competitions. Lockheed is seeking substantial damages and injunctive relief. Boeing states it is cooperating with investigations and will defend itself vigorously against the lawsuit, but the potential financial impact remains uncertain at this time.
Key Highlights
- 1Boeing is under review by the U.S. Air Force regarding its contractor responsibility due to a 1999 incident involving competitor information.
- 2The incident pertains to proprietary information of Lockheed Martin Corporation related to the Evolved Expendable Launch Vehicle (EELV) program.
- 3Two Boeing employees were terminated, and a third was reprimanded and retired in connection with the incident.
- 4The U.S. Attorney in Los Angeles is also investigating the matter.
- 5Lockheed Martin filed a lawsuit on June 10, 2003, seeking significant damages and injunctive relief against Boeing and its former employees.
- 6Boeing is cooperating with government investigations and plans to vigorously defend against the lawsuit.
- 7The potential material adverse financial impact of these matters is currently unpredictable.