Raytheon Settles Suit, Mooney Settles In
Raytheon has settled a pending lawsuit by its shareholders out of court. The company, which maintains the suit was without merit, nevertheless agreed to pay $210 million in cash and $200 million in stock to stop the class action suit. The deal has to be approved by the courts. Raytheon said it expects its insurance carriers to pick up $75 million of the tab. Raytheon said it is "pleased to put the uncertainty of the class action litigation behind it" and that the decision is "in the best interests of its shareholders." In the meantime, Mooney Airplane Company is moving ahead with a three-year business plan the company says has been endorsed by its employees and groups representing the owners of about 8,000 aircraft. Managing Director Tom Gray said the plan is to double sales to 70 aircraft in 2004 and add new features. It's also going to expand the sales force, add employees and improve production methods over the next three years, but the company press release didn't say just how all that would be accomplished. It did, however, say that it's important for everyone with a stake in Mooney to be aware of what the recently revived company is up to. "It was very important for us to get all of our team members on board to support this exciting new period for Mooney," Gray said. "The plan was met with overwhelming support. Now we begin the exciting task of implementing this plan and enhancing our value to the Mooney customer." The legendary company was plucked from bankruptcy two years ago by the Mooney Aerospace Group and remains based in Kerrville, Texas.