Engineering and construction firm Washington Group International has filed suit against Raytheon Co alleging fraud and seeking recompense for breach of contract in connection with the company’s acquisition in July 2000 of Raytheon Engineers & Constructors. Washington are alleging that Raytheon misrepresented or withheld significant information material to the deal, to the severe detriment of Washington, to the extent that their business now faces serious near-term liquidity problems. The action centres on the status of two power projects in Massachusetts, included in the deal, for which present liabilities exceed future earnings by $380 million.
