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6mo ago

Raytheon to Pay $950 Million in Settlement Over Fraud and Bribery Charges

The defense contractor resolves allegations of defrauding the U.S. government and bribing Qatari officials with a substantial financial settlement.

Overview

  • RTX Corporation, formerly Raytheon, agreed to pay over $950 million to settle charges of defrauding the U.S. Department of Defense and bribing a Qatari military official.
  • The settlement involves deferred prosecution agreements in federal courts in Boston and Brooklyn, requiring RTX to hire an independent compliance monitor for three years.
  • The company admitted to inflating costs on defense contracts, leading to over $111 million in excess payments for missile systems and radar operations.
  • Raytheon employees were found to have paid bribes to secure business deals with Qatar's military, violating the Foreign Corrupt Practices Act and the Arms Export Control Act.
  • This settlement follows a $200 million agreement in August for export control violations, as RTX continues to address legal issues stemming from past misconduct.