Raytheon Co. and Washington Group International Inc. agreed to settle a legal dispute stemming from defense contractor Raytheon’s sale of its construction unit to Washington Group.
Washington Group agreed to drop three lawsuits against Raytheon, and Raytheon will surrender an estimated $900 million in claims pending against the construction company.
Boise, Idaho-based Washington Group filed for Chapter 11 bankruptcy protection in May, blaming its July 2000 purchase of Raytheon Engineers & Constructors International Inc. for its financial problems. Washington Group sued Raytheon, saying the firm hid cost overruns and other liabilities.
Shares of Raytheon, based in Lexington, Mass., rose 5 cents to $32.75 on the NYSE.