Company sues Virginia over alleged breaches in contract

Markets Associated Press

Northrop Grumman Systems Corp. has filed a lawsuit against Virginia and its information technology agency over the state's attempt to end a 13- year contract.

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Richmond Times-Dispatch reports the aerospace and defense company filed the lawsuit Friday, seeking damages of more than $10 million. The lawsuit alleges the state sabotaged a settlement reached with officials in Gov. Terry McAuliffe's administration.

McAuliffe spokesman Brian Coy says the lawsuit is without merit and the governor is disappointed in Northrop Grumman's performance.

The company based in Falls Church, Virginia, says the state will increase the risk of significant IT security and service disruptions by ignoring its obligations.

The lawsuit caps a year of accusations between Virginia's technology agency and Northrop Grumman over how to end their partnership and ensure the safety of the government's IT network in the transition to multiple companies providing services.

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This story has been edited to clarify that Northrop Grumman is based in city of Falls Church, Virginia.

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Information from: Richmond Times-Dispatch, http://www.timesdispatch.com