Navy Loses Round in Stealth Lawsuit

McDonnell Douglas Corp. and General Dynamics Corp. can collect about $400 million in interest on money owed them by the Navy because of the cancellation of its stealth airplane project in 1991, a federal judge said. The ruling, issued last week by Judge Robert Hodges of the U.S. Court of Federal Claims in Washington, keeps the two companies on track in their bid to recover $1.5 billion from the government for the A-12 attack plane project. The Navy has said it will appeal Hodges’ decisions in the case after Hodges issues a final ruling, which is expected in February.