Summary
General Dynamics Corporation (GD) reported on June 3, 2009, that the U.S. Court of Appeals for the Federal Circuit affirmed a lower court's decision to uphold the government's default termination of the A-12 aircraft contract. This ruling is a significant setback for the company in its long-standing dispute with the government regarding this contract. Despite this unfavorable outcome, General Dynamics stated that it disagrees with the ruling and maintains its belief that the government's default termination was not justified. The company intends to pursue further legal action by seeking a re-hearing in the Federal Circuit, indicating its commitment to contesting the decision. Investors should note this ongoing legal battle and its potential financial implications.
Key Highlights
- 1U.S. Court of Appeals for the Federal Circuit affirmed government's default termination of the A-12 aircraft contract.
- 2The company believes the government's default termination was not justified.
- 3General Dynamics intends to seek a re-hearing in the Federal Circuit.
- 4The legal dispute centers on the A-12 aircraft contract.
- 5The ruling is a continuation of a long-standing legal battle.