A summary of Southern California-related business litigation developments during the past week.
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Hughes Sued Over Alleged Faulty Chips: A U.S. District Court suit unsealed Tuesday in Santa Ana charged that Hughes Aircraft covered up flaws in 4.75 million microchips installed in defense systems. The suit, seeking $9.6 billion in damages, was filed by Michael Denlinger, a former Hughes Aircraft engineer who said he was forced to blow the whistle on the company because “lives can be taken” if the nation’s weapons systems are flawed. The chips were installed in 18 different weapons systems, including a Navy torpedo system and other radar and communications systems. Hughes officials at first dismissed the suit as “fantasy,” but on Wednesday the company conceded that defective microchips resulted in the failure of at least one test torpedo that was part of a system to be installed next year in submarines. (Filed June 21, 1989, Case No. CV89-410 AHS)
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