March 23, 2010
By Alton K. Marsh
A lawsuit filed last week by Cirrus Design against L-3 Avionics Systems of Grand Rapids, Mich., alleges L-3 spread rumors among Cirrus suppliers that Cirrus is heading toward bankruptcy.
The suit filed by Cirrus last week and reported in the Minneapolis Star Tribune alleges L-3 urged suppliers to end their relationships with Cirrus Design, and comes at a time when Cirrus is expecting a better-than-forecast 2010 and is seeing a spike in orders compared to 2009.
Cirrus states in its lawsuit that if suppliers stop the flow of parts, it would not be able to meet production requirements. The company also said that if it were forced into bankruptcy it would lose customers due to concerns over warranty and parts support. The company asks that L-3 be prevented from contacting suppliers and seeks unspecified damages, the newspaper reported.
Both L-3 and Cirrus Design officials declined to comment on the case.
L-3 has a lawsuit pending against Cirrus, filed last year, for $21.7 million claiming it was to provide SmartDeck avionics systems for the Cirrus Vision Jet and SR22 models.
AOPA Pilot Senior Editor Alton Marsh has been a pilot since 1970 and has an airline transport pilot certificate and instrument and multiengine flight instructor certificates, aerobatic training, and a commercial seaplane certificate.
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