Sparton Corp. [SPA] on Monday said it has agreed to pay L-3 Communications [LLL] $2.5 million related to a lawsuit L-3 filed in Sept. 2013 over a breach of contract.
The settlement requires Sparton to pay L-3 by Oct. 1 in consideration for dismissal of the litigation with neither party admitting to mistakes, damage or fault, Sparton said.
“Our ongoing relationship with L-3 remains solid and we expect to continue to be partners well into the future,” Cary Wood, president and CEO of Sparton, said in a statement. “The new business development funnel continues to be strong overall and includes a number of key L-3 programs currently in the quote phase.”
John Mega, president of L-3’s Communication Systems business segment, said in a statement that “I expect Sparton to continue to be an integral part of our supply chain as evidenced by the multiple programs currently sourced and being produced, as well as a number of other programs being quoted by them for future sourcing opportunities.”
Sparton in a November 2013 quarterly filing with the Securities and Exchange Commission said that L-3 on Sept. 24, 2013 filed a complaint in United States District Court in Florida alleging that it failed to follow L-3 Linkabit “drawings for the manufacture and assembly of certain products and that” Sparton “changed its manufacturing process resulting in shipment of defective products to Linkabit.”
Court documents indicate that the lawsuit was related to modems.