Cirrus Drops Latest Suit Against L-3
Cirrus has sought "voluntary dismissal" of a lawsuit it filed in March against L-3 Communications for allegedly spreading rumors about Cirrus' financial stability, but has reserved the right to refile. L-3 had not yet filed a response to the suit. The suit had sought unspecified damages from L-3 and alleged the company was telling suppliers that Cirrus was headed for bankruptcy. Cirrus claimed the rumors were false and could disrupt their supply chain. The development doesn't mean the two will stay out of court. Last May, L-3 sued, claiming Cirrus owed it nearly $19 million per supply agreements. Cirrus then countersued, accusing L-3 of breaching their agreement. The two parties are expected to go to trial in December to settle that earlier suit.
Cirrus announced in March that its first-quarter sales were on pace to match its 2008 numbers (550 aircraft delivered) -- a sharp rise from the same period in 2009 (268 aircraft delivered). The company says its SR22 last year retained its title as the world's best-selling four-place aircraft for the seventh year, and this year the company has won more than 25 new reservations for its Vision jet. Company president and CEO Brent Wouters told Prairie Business Magazine his company's restructuring had dropped Cirrus' break-even point to less than half of its 2008 level, and "we're pleased with the momentum we're seeing on the sales side."