RTX Corp. is in the final phases of negotiating a settlement to conclude a lengthy criminal investigation initiated by the U.S. government. The resolution pertains to accusations regarding the pricing mechanisms used in missile and defense service contracts.
According to individuals familiar with the matter, the settlement is expected to be finalized by the end of summer. This development comes at the end of a Justice Department investigation, led by the criminal fraud section in collaboration with the U.S. Attorney’s Office in Massachusetts. The inquiry, which has been ongoing for nearly four years, scrutinized several contracts involving missile and defense services.
In April, RTX publicly disclosed that it had allocated $306 million to cover potential penalties associated with the case.
The deal, when finalized, is anticipated to bring considerable clarity to RTX’s financial outlook and allow the company to move past the prolonged legal scrutiny. For more details, read the full article on Bloomberg Law.