Bollinger suing Northrop over cutter contract
The Associated Press
Tuesday Oct 21, 2008
NEW YORK — Bollinger Shipyards Inc. has filed a $12 million lawsuit against the shipbuilding arm of defense giant Northrop Grumman Corp. in a dispute involving the renovation of Coast Guard cutters that were later taken out of service.
Lockport, La.-based Bollinger had a joint venture with Northrop Grumman Ship Systems Inc. to extend the length of 49 Coast Guard cutters from 110 feet to 123 feet. But the first eight boats produced under that contract were taken out of service when the frames cracked on their maiden voyages.
The renovations also were performed by Halter Marine Inc. of Gulfport, Miss. The $200 million contract that covered the work was canceled by the Coast Guard in July 2005.
The vessels, called Island Class cutters, were originally built between 1984 and 1991 by Bollinger.
The federal court complaint, which asks for arbitration, claims that Bollinger was ordered by Northrop Grumman to stop work on the contract after Bollinger had delivered six boats and had begun work on six others.
To terminate the joint venture, Bollinger said it demanded that Northrop Grumman pay it $12.1 million in damages, but the company refused in October 2007.
In September, the Coast Guard awarded Bollinger a contract worth up to $1.5 billion to design and build up to 34 new patrol boats — a move that resulted in sharp criticism by U.S. Rep. Bennie Thompson, a Mississippi Democrat.
In 2005, the Coast Guard said the cancellation of the renovation contract was not a reflection of the work done by Bollinger.
In the lawsuit, Bollinger said Northrop Grumman “through its sole negligence, delivered late, ill-defined specifications and drawings to Bollinger. Bollinger needed this information in a timely manner to efficiently perform its subcontract.”
Northrop Grumman Ship Systems spokesman Ed Winter said the company does not comment on litigation.
Cogent Systems and Northrop Grumman Reach Agreement to Settle Automated Fingerprint Identification Technology Suit and Create Strategic Alliance
LOS ANGELES – Sept. 10, 2007 – Cogent Systems (NASDAQ: COGT) and Northrop Grumman Corporation (NYSE:NOC) today announced that they have reached an agreement to settle Cogent's lawsuit against Northrop Grumman regarding Cogent's automated fingerprint identification technology. The agreement is subject to negotiation and execution of definitive documents.
Under the terms of the agreement, Northrop Grumman has agreed to pay Cogent $25 million to settle the litigation. Northrop Grumman also has agreed to pay Cogent $15 million for a non-exclusive license to use specified Cogent state-of-the-art automated fingerprint identification software in certain existing programs, including IDENT1. Northrop Grumman and Cogent also have agreed to enter into a five-year research and development, service and products agreement, under which Northrop Grumman will pay Cogent $20 million for products and services over the term of the agreement. Northrop Grumman does not expect the terms of the agreement to have an impact on its guidance for 2007.
This settlement will end the litigation and allow the companies to work together as strategic alliance partners to provide future customers with state-of-the-art fingerprint identification technology and other biometric solutions.
Cogent filed suit in 2005 alleging that Northrop Grumman had misappropriated its proprietary technology and trade secrets for automated fingerprint identification software for use on the IDENT 1 contract with the British Police Information Technology Organisation, and its successor the National Policing Improvement Agency.
Northrop Grumman Corporation is a $30 billion global defense and technology company whose 120,000 employees provide innovative systems, products, and solutions in information and services, electronics, aerospace and shipbuilding to government and commercial customers worldwide.
Cogent is a global biometric identification solutions provider to governments, law enforcement agencies, and commercial enterprises. Cogent provides the highest quality identification systems, products and services with leading technology, accuracy and speed. Cogent's Automated Fingerprint/Palmprint Identification Systems, or AFIS, enable customers to capture fingerprint and palm print images electronically, encode prints into searchable files, and accurately compare a set of fingerprints/palm prints to a database containing potentially millions of prints in seconds.
This press release contains, in addition to historical information, forward-looking statements. Such statements are based on management's current estimates and expectations and are subject to a number of uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Cogent and Northrop Grumman are providing this information as of the date of this press release, and expressly disclaim any duty to update information contained in this press release.
Forward-looking statements in this press release include, without limitation, express and implied statements regarding the timing and terms of the definitive documents related to the settlement, potential revenue that may be received by Cogent under the proposed settlement documents and the potential benefits of the anticipated business relationship between Cogent and Northrop Grumman. These forward-looking statements involve risks and uncertainties which could cause actual results to differ materially from those expressed or implied here. Readers are referred to Cogent's Report on Form 10-Q for the quarter ended June 30, 2007 filed by Cogent with the Securities and Exchange Commission which identifies important risk factors that could cause actual results to differ from those contained in the forward-looking statements, including but not limited to: the risk that negotiations over the definitive documents may result in the inclusion of provisions that modify the anticipated timing or benefits currently anticipated; and risks that issues not currently anticipated will delay, modify or impair the completion of the settlement. . The information contained in this press release is a statement of Cogent's and Northrop Grumman's present intention, belief or expectation and is based upon, among other things, existing industry conditions, market conditions, the economy in general and Cogent's and Northrop Grumman's assumptions. Either Cogent or Northrop Grumman may change its intention, belief or expectation, at any time and without notice, based upon any changes in such factors, in its assumptions or otherwise. Neither Cogent nor Northrop Grumman undertakes any obligation to review or confirm analysts' expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. By including any information in this press release, neither Cogent nor Northrop Grumman necessarily acknowledges that disclosure of such information is required by applicable law or that the information is material.
Northrop Grumman Contacts:
Dan McClain (Media)
(310) 201- 3335
Gaston Kent (Investors)
Cogent Systems Contacts:
The Blueshirt Group (Investors)