RTX to Pay $950 Million Settlement Over Qatar Bribes and Defrauding U.S. Defense Department

Oct 16, 2024, 08:26 PM

RTX Corporation, formerly known as Raytheon, has agreed to pay over $950 million to resolve charges involving foreign bribery, export control violations, defective pricing schemes, and defrauding the U.S. Department of Defense. Between 2012 and 2018, Raytheon employees allegedly paid bribes to a high-level Qatari military official to secure lucrative defense contracts, concealing these payments by falsifying documents. The company overcharged the Pentagon by $111 million through defective pricing in two contracts for RTX products. The settlement resolves long-running investigations by the Department of Justice and the Securities and Exchange Commission that began in 2019. RTX has entered into a deferred prosecution agreement addressing violations of the Foreign Corrupt Practices Act and the Arms Export Control Act, and will pay $574.7 million to settle procurement fraud and pricing investigations, $252 million to resolve FCPA charges, and over $124 million to settle SEC charges.