RTX Corp. has agreed to pay nearly $950 million to resolve federal charges it defrauded the U.S. Department of Defense into overpaying for defense systems, and for bribing an Qatari Air Force official.
The Raytheon unit entered Wednesday into two deferred prosecution agreements to resolve criminal charges filed by the U.S. Justice Department in Boston and Brooklyn.
Also settled: Justice claims involving a whistleblower lawsuit and a related foreign bribery case by the U.S. Securities and Exchange Commission.
Under the accords, prosecutors have agreed to dismiss criminal charges against the company after three years if it complies with the terms of the deferred prosecution agreements, which call for hiring an independent compliance monitor.
RTX disclosed July 25 in its second-quarter earnings report that it recorded a combined $918 million in charges for separate legal issues involving Justice and the SEC, some of which date back to 2011.
One of RTX's three primary business units is Collins Aerospace, which has about 1,500 employees in Winston-Salem.
RTX provided settlement details in a regulatory filing Wednesday.
If Raytheon and RTX "each fully complies with all of their respective obligations during the three-year term, the DOJ will move for dismissal with prejudice of the deferred charges against Raytheon."
A $282 million criminal monetary penalty and forfeiture of $282 million is to be paid to Justice within 10 business days of the settlement becoming official.
The SEC's administrative cease and desist order provides for a $102 million payment to the SEC that includes disgorgement, prejudgment interest on disgorgement, and a civil penalty to be paid within 14 calendar days.
Another element of the settlement provides for a criminal penalty in the amount of $147 million to be paid within 10 business days, as well as another settlement payment of $428 million, which includes restitution plus interest, to be paid within 7 calendar days.
"The amounts to be paid in connection with these matters as described above are consistent with those accrued as of June 30," the company said.
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