General Dynamics Corp was named as a defendant in a multimillion dlr fraud suit brought by the U.S. government in 1985 stemming from government subsidized shipbuilding contracts according to court documents. The government originally filed the suit against two of Dynamics officers and two officers of its subcontractor Frigitemp Corp. The suit filed in federal court in New York seeks to reclaim funds from kickbacks overpayments and subsidies that were allegedly overexpended on two shipbuilding projects. The government paid 70 mln dlrs in subsidies between 1978 and 1982 court papers said.
GENERAL DYNAMICS <GD> NAMED AS DEFENDANT