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Legal | Northrop-Grumman | USA

Northrop Grumman Goes Even with US Government On Legal Settlements

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Northrop Grumman has disposed of 2 lawsuits involving the US government by setting them off against each other. The first matter involved a lawsuit filed by Northrop Grumman in December 1996 against the U.S. government for recovery of uncompensated costs, investments and a reasonable profit related to the Tri-Service Standoff Attack Missile (TSSAM) program that the government canceled for convenience in 1995. Under the terms of the agreement, the Department of Justice valued Northrop Grumman’s TSSAM claims at $325 million. The second matter involved a U.S. Department of Justice claim related to certain microelectronics parts produced by the former TRW Inc., prior to its acquisition by Northrop Grumman in 2002, based on allegations contained in a False Claims Act case. Under the terms of the agreement, the Department of Justice valued its claims regarding the microelectronics matter at $325 million. The net is, of course, zero. Note that in Q3 2006, the company had recorded a legal provision for settlement and legal expenses related to the microelectronics claim. Northrop Grumman release.

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