Lockheed Martin Corp. was ordered Thursday to pay $64.5 million to a small, 25-employee Anaheim computer products maker after a federal jury found that a unit of the nation's largest defense contractor had improperly pulled the plug on a joint venture.
After a six-week trial in Los Angeles, a jury found Lockheed Martin and its units, Sanders and Federal Systems, had breached a contract and committed fraud against Cable & Computer Technology. The jury awarded CCT $11.3 million in compensatory damages and $53.2 million in punitive damages.
CCT had entered into an agreement in 1996 with Lockheed Martin's former Sanders unit in Nashua, N.H., to bid on a $60-million contract to upgrade cockpit computers for the Air Force's B-1B bombers.
But CCT lawyers alleged that the unit, now owned by BAE Systems North America, canceled the venture just 12 days before the bid was due, then joined with another Lockheed unit to secure the contract.