Cirrus, L-3 Legal Wrangle Takes A Twist
Cirrus Aircraft has gone to court to stop a former supplier from allegedly telling other suppliers that Cirrus is headed for bankruptcy. According to the Minneapolis Star Tribune Cirrus filed suit Thursday against Grand Rapids, Mich.-based L-3 Communications and also claims L-3 has been encouraging other suppliers to stop doing business with Cirrus. Cirrus wants the court to stop L-3 from contacting suppliers and is also seeking unspecified damages. Cirrus claims that if suppliers act on the alleged advice from L-3, it would be forced out of business and that the bankruptcy allegations could scare off potential customers. L-3 was closed on the weekend and officials could not be reached for comment. The suit is the latest wrinkle in legal wrangling between the two companies that began last May.
L-3 launched a suit against Cirrus last year alleging non-payment of $18.7 million for development of a flat panel electronics for Cirrus aircraft. Cirrus has countered that L-3 broke the supply contract. The suit is expected to go to court in December. Last week Cirrus issued a news release saying it believed that the aircraft market is going to be stronger than predicted in the coming year. It said it had weathered the severe downturn and that the resulting restructuring will allow the company to take even better advantage of the business upswing.