Court Upholds Navy Cancellation Of A-12 Aircraft

Both contractors are now required to repay the government more than $1.35 billion, plus interest of $1.45 billion.

Boeing had questioned whether the government owed money to both companies for work in progress when the contract was terminated.

In a statement, Boeing called for an immediate appeal of the court's ruling. Falls Church, Va.-based General Dynamics issued a statement saying it disagrees with the ruling and continues to believe that the government's default termination was not justified. The company intends to seek a re-hearing in the Federal Circuit.