Defense contractor Raytheon Co. has reached a settlement with the owners and other interested parties in connection with the Massachusetts Exelon Mystic and Exelon Fore River power plant projects, and litigation has been dismissed.
Raytheon had sued Exelon for breach of contract in the construction of electricity-generating plants in Everett and Weymouth. Exelon and Raytheon resolved their claims and Raytheon was paid approximately $30 million, the company said in a release. Raytheon’s outstanding letters of credit regarding the projects, approximately $73 million, have also been discharged and released.
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The project owners will assume all of the obligations to finalize construction work, and Raytheon will have no additional responsibility to complete final list work or to provide any warranties, the company said. Raytheon will only be responsible for claims from work done before the settlement. The settlement will not affect the company’s earnings.
The settlement is a milestone in Raytheon’s efforts to wrap up its remaining issues from the discontinued engineering and construction businesses, said William H. Swanson, Raytheon chairman and CEO.
