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Raghavan v. Boeing Co.10/31/2005
f BSS.
In late 2000 and early 2001, the "Boeing Commercial Aircraft Group" (BCAG) was working on a potential sale of aircraft to the Russian airline Aeroflot. As part of the sale, the Russians requested an "industrial offset" - if the Russians bought the aircraft, Boeing would agree to conduct other business with Russian industries. The effort to find additional business was supervised by Don Zinn, the acting vice- president of business development for Boeing's "Space and Communications Group" (S&C).
Zinn was considering a possible satellite deal with the Russians. Raghavan had previous experience in marketing satellites to Russians and was chosen to work on the deal. In mid-April 2001, Zinn told Raghavan to stop all work on the industrial offsets. At his deposition, Raghavan was asked, "Isn't it a fact that at a later point in time, you were given unequivocal instructions by Seal Beach [(Zinn)] to discontinue any efforts to try and assist them in connection with any industrial offset?" Raghavan replied, " t a later time, some time in mid-April, I was - I was - you see you are jumping - let me go back. [ ] . . . [ ] At the later stage, yes, I was told that S&C was not interested in the industrial offset." Raghavan was also asked, "Dr. Raghavan, do you recall a conversation between yourself and Mr. Zinn on the telephone during mid-April in which he quote, asked you `to stop exploring the industrial offset possibility,' close quote." Raghavan answered, "Yes, sir, I do." As Zinn testified, "A decision was made to put it all on hold because the deal was falling apart."
Raghavan wrote a memo to himself, dated June 15, 2001, stating: "During mid-April, Don Zinn asked me to stop exploring the industrial offset possibility; accordingly, I stopped work on that & concentrated on the satellite sales, purely as a business case for BSS."
At some point in April 2001, Raghavan's own vice-president, Ronald Maehl, gave him permission to pursue the sale of satellites to the Russians. As Raghavan testified at his deposition: "They said don't worry about industrial offset, if BSS is interested in satellite sales and service business opportunities, transponder sales opportunities, please go ahead and do it, and then I talked to Ron Maehl. [ ] He said, yes. Don't worry about industrial offset, just concentrate on satellite sales and establishing a partnership to - for transponder - owning of transponders and frequencies and service opportunities and exactly that is what I followed."
Raghavan went to Russia in late April. This was his second trip. About a week before the trip, Zinn told Raghavan that there "may be some commercial offset of aircraft here" and gave Raghavan the names of some people to contact to determine whether that was true. But before Raghavan left, Zinn suggested that he not bring up the subject of industrial offsets with the Russians. As Raghavan testified, "Mr. Zinn came back some time later to tell me not to - even before I was going for a second trip to Russia, not to do any discussions with any of the Russian customers on the industrial offset, . . . and I just followed his advice."
Raghavan worked with Geoffrey Gibbs, a business development manager, who prepared a written proposal supporting Raghavan's satellite project. According to Maehl's deposition testimony and Raghavan's declaration, Maehl recommended that Raghavan explain the aircraft deal and the industrial offsets "as part of the history of the [satellite] project." Raghavan showed the written proposal to Maehl, who suggested that minor changes be made. Gibbs made the changes.
On May 29, 2001, Raghavan met with senior BSS executives and requested $250,00
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