David Hudak's federal lawsuit, filed Oct. 13 in Albuquerque, also claims that Halliburton, its former Jet Research Center subsidiary and another military contractor, Tennessee-based Accurate Arms Co., sold thousands more of the warheads to others in similar transactions.
The companies should have paid to have the warheads destroyed, as required by their military contracts, the lawsuit contends.
In a statement, Houston-based Halliburton said the 10 years that have passed since the sale of the warheads make the case difficult to investigate.
Accurate Arms bought Jet Research from Halliburton in early 1994, the same day Hudak completed his purchase of nearly 2,500 warheads. Accurate Arms President John Sonday, also named in Hudak's lawsuit, declined to comment.
The warheads were in Hudak's possession at his Roswell counterterrorism training center when it was raided by federal agents on Aug. 16, 2002. Hudak said Halliburton offered him the devices at a deep discount for use in his demolition business.
Hudak spent 17 months in prison while awaiting trial for possessing the military explosives. His businesses failed while he was in jail, his suit says.
"It was illegal for David Hudak to possess illegal warheads, it was even more illegal to sell illegal warheads - to anyone, particularly a foreigner," said Hudak's attorney, Bob Gorence.