A-12 Avenger II

The McDonnell Douglas/General Dynamics A-12 Avenger II was a proposed American attack aircraft from McDonnell Douglas and General Dynamics. It was to be an all-weather, carrier-based stealth bomber replacement for the Grumman A-6 Intruder in the United States Navy and Marine Corps. Its Avenger II name was taken from the Grumman TBF Avenger of World War II.

The development of the A-12 was troubled by cost overruns and several delays, causing questions of the program's ability to deliver upon its objectives; these doubts led to the development program being canceled in 1991. The manner of its cancellation was contested through litigation until a settlement was reached in January 2014.

The manner in which the program was canceled led to years of litigation between the contractors and the Department of Defense over breach of contract. On 1 June 2009, the U.S. Court of Appeals for the Federal Circuit ruled that the U.S. Navy was justified in canceling the contract. The ruling also required the two contractors to repay the U.S. government more than US$1.35 billion, plus interest charges of US$1.45 billion. Boeing, which had merged with McDonnell Douglas, and General Dynamics vowed to appeal the ruling.  In September 2010, the U.S. Supreme Court said it would hear the two companies' arguments, that the government canceled the project improperly and that the use of a state secrets claim by the U.S. prevented them from mounting an effective defense.   In May 2011, the Supreme Court set aside the Appeals Court decision and returned the case to federal circuit court.   In January 2014, the case was settled with Boeing and General Dynamics agreeing to pay $200 million each to the U.S. Navy.

http://en.wikipedia.org/wiki/McDonnell_Douglas_A-12_Avenger_II