Court orders U.K. to pay Raytheon $374 million over borders fiasco


At last the blame game for the endless lines at immigration at London’s Heathrow airport is over. It’s now officially the fault of the U.K. government and its Border Agency, not defense and security systems company Raytheon Co. [fortune-stock symbol=”RTN”].

For the last four years, the British government has been trying to blame Raytheon for failing to deliver on a $1.25 billion contract to provide an electronic border control system aimed at speeding up immigration lines while ensuring that terrorists don’t enter the country.

But an arbitration court ruled Monday that the government had acted unlawfully when it cancelled the eBorders contract in 2010, and ordered it to pay Raytheon $374 million in damages.

The ruling means that the reputational damage to Raytheon is far less than it could have been. The company is increasingly relying on electronic and cyber-security work to offset long-term pressure on its traditional business of…

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