Rockwell Collins Sues Hughes Electronics

Rockwell International Corp.’s avionics division sued Hughes Electronics Corp., claiming Hughes failed to disclose vital information about a subsidiary sold to Rockwell in 1997. Rockwell alleges that Hughes failed to disclose that its Hughes-Avicom International Inc. wasn’t complying with a contract to design and build a communications interface for Boeing Co.’s 747s and 767s. The Rockwell Collins division was forced to expend significant staff and resources to meet an April 1998 delivery deadline, the suit claims. The suit, filed Friday in Los Angeles County Superior Court, seeks at least $28 million in compensatory damages from El Segundo-based Hughes, a unit of General Motors Corp. Shares of Milwaukee-based Rockwell rose 56 cents to $54.56. General Motors’ Class H stock, which represents Hughes Electronics, rose $1.63 to $56.50.