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Case Status:    SETTLED
On or around 07/12/2005 (Date of order of final judgment)

Filing Date: June 19, 2001

According to the docket, at the proceedings held on July 11, 2005, Judge B. Lynn Winmill granted motions to approve the settlement, the plan of distribution, and the appliciation for attorneys' fees and reimbursement of expenses. The Court entered the Final Judgment and Order of Dismissal with prejudice on July 12.

In a press release dated April 15, 2005, Raytheon Company announced that it has reached an agreement in principle to settle a class action securities lawsuit pending in the United States District Court for the District of Idaho. The terms of the settlement, which are subject to approval by the court, include a cash payment of $39 million that the Company expects to make in the second quarter of 2005. Plaintiffs' attorney's fees are included within the settlement.

The complaint alleges that during the Class Period, Raytheon deliberately misrepresented the true financial condition of its Raytheon Engineers & Constructors ("RE&C") division in order to sell this division to Washington Group at an artificially inflated price. On April 17, 2000, the beginning of the Class Period, Raytheon and Washington Group each issued press releases disclosing Raytheon's sale of RE&C to Washington Group for a modest cash price and Washington Group's assumption of RE&C's liabilities of approximately $500 million. The sales agreement, which was filed with the Securities and Exchange Commission on the same day, detailed the transaction, including Raytheon's promise to reimburse Washington Group for cost overruns from certain projects. Throughout the Class Period, defendants issued misleading financial statements for RE&C that failed to disclose massive cost overruns of approximately $700 million that were known to exist at the time of the sale transaction, but were not disclosed to investors. On March 2, 2001, the Class Period closes with Washington Group's shocking announcement that Raytheon was refusing to honor its previously disclosed contractual commitments to reimburse Washington Group for these massive cost overruns. Further, Washington Group announced that Raytheon's refusal to reimburse Washington Group for these massive cost overruns placed the Company in a severe "near-term liquidity problems" -- including being in default of its senior credit facilities -- that could result in the bankruptcy of the Washington Group. Following this announcement, the price of Washington Group stock plummeted 80% from $8.00 per share to $1.65 per share, causing a market capitalization loss of more than $400 million to stockholders, and more than $200 million to bondholders. Ultimately, these cash shortages forced Washington Group to seek protection under the bankruptcy laws on March 14, 2001.

COMPANY INFORMATION:

Sector: Conglomerates
Industry: Conglomerates
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: WNG
Company Market: New York SE
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: D. Idaho
DOCKET #: 01-CV-00284
JUDGE: Hon. Lynn Winmill
DATE FILED: 06/19/2001
CLASS PERIOD START: 04/17/2000
CLASS PERIOD END: 03/01/2001
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Hagens Berman & Mitchell
    2425 East Camelback Road; Suite 620, Hagens Berman & Mitchell, AZ 85016
    602.840.5900. 602.840.3012 · info@hagens-berman.com
  2. Kirby McInerney & Squire LLP
    830 Third Avenue 10th Floor, Kirby McInerney & Squire LLP, NY 10022
    212.317.2300 ·
No Document Title Filing Date
COURT: D. Idaho
DOCKET #: 01-CV-00284
JUDGE: Hon. Lynn Winmill
DATE FILED: 10/01/2001
CLASS PERIOD START: 04/17/2000
CLASS PERIOD END: 03/01/2001
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Hagens Berman, LLP
    1301 Fifth Avenue Suite 2900, Hagens Berman, LLP, WA 98101
    206.623.7292 · info@hagens-berman.com
  2. Kirby McInerney & Squire LLP
    830 Third Avenue 10th Floor, Kirby McInerney & Squire LLP, NY 10022
    212.317.2300 ·
No Document Title Filing Date