XML 31 R20.htm IDEA: XBRL DOCUMENT v3.3.1.900
Legal Proceedings
6 Months Ended
Nov. 30, 2015
Legal Proceedings  
Legal Proceedings

Note 12 — Legal Proceedings

 

DynCorp International LLC v. AAR Airlift Group, Inc.

 

On September 8, 2015, AAR Airlift Group, Inc. (“AAR Airlift”), a wholly-owned subsidiary of AAR CORP. located in Palm Bay, Florida, was served with a lawsuit filed on September 4, 2015 by DynCorp International LLC (“DynCorp”) in the United States District Court for the Middle District of Florida, Orlando Division.   DynCorp’s lawsuit alleges that AAR Airlift misappropriated proprietary DynCorp information, including trade secrets, in connection with the submission of proposals pursuant to a solicitation issued by the Department of State Bureau of International Narcotics and Law Enforcement Affairs, Office of Aviation (“INL/A”) in support of State’s Worldwide Aviation Support Services (“WASS”) program. The lawsuit contains seven counts and seeks unspecified actual and compensatory damages, as well as preliminary and permanent injunctive relief against AAR Airlift’s purported misappropriation of DynCorp information.

 

The Court denied DynCorp’s motion for expedited discovery on September 23, 2015.  The Court also denied DynCorp’s motion for a preliminary injunction in its order dated October 9, 2015.  Following the issuance of the Court’s denial of its motion for preliminary injunction, DynCorp filed a First Amended Complaint on October 19, 2015.  The First Amended Complaint contains substantially the same claims contained in the original complaint and alleges that AAR Airlift misappropriated DynCorp’s trade secrets in connection with the submission of proposals pursuant to the solicitation issued by the INL/A in support of the WASS program. On November 5, 2015, AAR Airlift filed a motion to dismiss the First Amended Complaint, asserting, among other things, that DynCorp failed to adequately state a claim.

 

On November 5, 2015, AAR Airlift also filed a motion to stay discovery in the DynCorp lawsuit, at least until the Court has ruled on AAR Airlift’s motion to dismiss the DynCorp First Amended Complaint.  On December 3, 2015, the Court granted AAR’s Airlift’s motion to stay all discovery in the case until 15 days following the Court’s order on AAR Airlift’s motion to dismiss.  To date, the Court has not ruled on AAR Airlift’s motion to dismiss the First Amended Complaint.

 

AAR Airlift will continue to defend itself vigorously against DynCorp’s lawsuit and any attempt to invalidate or interfere with AAR Airlift’s lawful participation in the INL/A contract award competition.

 

OIG Investigation

 

The U.S. Department of State received — and referred to its Office of Inspector General (“OIG”) — a May 2015 letter from DynCorp in which DynCorp made substantially the same allegations against AAR Airlift as set forth in both its original complaint and its First Amended Complaint.  The OIG is investigating these allegations, and AAR Airlift is cooperating fully in that investigation.