American Diversified Corp. v. United States

In these Renegotiation Act cases, consolidated solely for trial, we make de novo redeterminations of excessive profits under 50 U.S.C. app. § 1218. The cases involve profits of American Diversified Corporation (ADC) for its fiscal years ended June 30, 1967 and 1968, and the profits of Jon-Dell, Inc. (Jon-Dell), a wholly-owned subsidiary of ADC, for its fiscal year ended March 31, 1967. All subsequent year references are to the fiscal years of the companies unless otherwise stated.

The Renegotiation Board determined that ADC had realized excessive profits of $1 million and $1,650,000 in 1967…