Summary
General Dynamics Corporation (GD) filed an 8-K report on November 24, 2009, to announce a significant development in its long-standing A-12 aircraft contract dispute with the U.S. government. The U.S. Court of Appeals for the Federal Circuit denied the company's petition for rehearing regarding the government's default termination of the contract. This ruling sustains the government's previous decision, which GD maintains was not justified. The company remains steadfast in its belief that the termination was unwarranted and sees grounds for further appeal. Consequently, General Dynamics intends to petition the U.S. Supreme Court for a review of this decision. Investors should note that this ongoing litigation has implications for potential financial recoveries and legal liabilities related to the A-12 program.
Key Highlights
- 1U.S. Court of Appeals for the Federal Circuit denied GD's petition for rehearing on the A-12 aircraft contract.
- 2The court's decision upholds the government's default termination of the A-12 contract.
- 3General Dynamics believes the government's termination was not justified.
- 4The company intends to petition the U.S. Supreme Court for review of the decision.
- 5This filing indicates continued legal and financial uncertainty surrounding the A-12 contract dispute.
- 6A press release regarding the court's decision is included as an exhibit.