Business

Raytheon wins $392 million settlement from British government

An arbitration panel in the United Kingdom has awarded Raytheon Co. $392 million in a dispute related to a contract that was canceled by the British government.

In 2007, the Waltham defense contractor won a $1.35 billion, 10-year contract to lead a consortium of companies that would build a security system to track people entering and leaving the United Kingdom. The contract was canceled in 2010, and Raytheon took a charge against earnings of $274 million. Raytheon sued in 2011, seeking $823 million.

An arbitration panel was appointed to resolve the dispute. It awarded Raytheon $309 million in damages and other monetary relief and ordered the repayment of $83 million the British Home Office had drawn on Raytheon letters of credit. Raytheon may also be entitled to additional payments to cover costs and accrued interest.

Hiawatha Bray