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AEROSPACE & DEFENSE

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From Times Staff and Wire Reports

McDonnell Says Potential Charge Is Up $150 Million: McDonnell Douglas said the potential charge it faces if its lawsuit against the U.S. government over the canceled A-12 attack plane fails has increased by $150 million. The company said the increase, disclosed in a 10Q filing, is due to higher costs of terminating contracts with its suppliers on the jet program. The government is suing a number of A-12 contractors for the return of $1.35 billion on the contract. St. Louis-based companies McDonnell Douglas and General Dynamics Corp. last June filed a lawsuit against the government seeking more than $1 billion, arguing that the termination of the A-12 was for the government’s convenience only.

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