Back to News
RTX

RTX Agrees to Pay $280 Million to Resolve US Foreign Bribery Investigation

RTX Corporation has agreed to pay over $280 million to settle criminal charges related to a foreign bribery probe by the U.S. Department of Justice, involving violations of the Foreign Corrupt Practices Act and Arms Export Control Act.

RTX Corporation, formerly known as Raytheon Technologies, has reached a significant settlement with the U.S. Department of Justice, agreeing to pay more than $280 million to resolve criminal charges stemming from a long-running foreign bribery investigation. This settlement is part of a series of agreements that the Arlington, Virginia-based company has been negotiating with the Justice Department and the U.S. Securities and Exchange Commission.

The charges against RTX's Raytheon subsidiary include conspiracy to violate the Foreign Corrupt Practices Act and the Arms Export Control Act. These charges are related to improper payments made in connection with contracts in Middle Eastern countries, dating back to 2014. The company has set aside $959 million to cover these settlements.

Under the terms of the deferred prosecution agreement, which will last for 3-1/2 years, RTX will pay a criminal penalty of $252.3 million and forfeit $36.7 million, with a $7.4 million credit expected from a related SEC settlement. The agreement also requires RTX to retain an independent compliance monitor to ensure adherence to legal and ethical standards.

This resolution marks the end of investigations that have been ongoing since 2019, following the merger of Raytheon Technologies with United Technologies in 2020. The company has since rebranded as RTX Corporation. The settlement underscores the importance of corporate compliance and the severe consequences of violating U.S. laws governing foreign business practices.

Articles published about this story
More stories