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

Loading comments...
Real journalists. Real journalism. Subscribe to The Boston Globe today.