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Virginia to pay Northrop Grumman $35M over contract dispute

CHESTER, Va. (AP) — Officials say Virginia has settled its legal dispute with Northrop Grumman for nearly $40 million.

The Richmond Times-Dispatch reports the state Information Technologies Agency and Northrop Grumman Corp. announced Friday they’ve settled dueling lawsuits filed 2½ years ago in Richmond Circuit Court over the early end of Virginia’s 13-year, $2.4 billion contract for government IT and services.

Virginia will pay Northrop Grumman $35.8 million, roughly half of the $72 million the Falls Church-based company said it was owed in fees for the state’s decision to end the contract almost a year early. The settlement also requires Virginia to release $4.2 million in fees it withheld for mainframe computer service during the dispute.

State Chief Information Officer Nelson Moe and Northrop Grumman spokesman Tim Paynter say both are pleased the dispute is resolved.

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

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