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Northrop Grumman Corp. is suing Lockheed Martin Corp. for allegedly cutting it out of a $4 billion Army contract, escalating a fight among various companies over the shrinking number of military contracts.

Northrop's lawsuit, filed in federal court in San Jose, claims that after Northrop helped Lockheed secure a contract to manufacture a new missile defense system, Lockheed assigned Northrop's share of the job to one of its own production units.

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