(Bloomberg) -- RTX Corp. said it has set aside a combined $959 million as part of a deal with the US government to settle a criminal investigation into pricing for missile and defense services, as well as a separate corruption probe.
The company, formerly known as Raytheon, expects to enter into a three-year deferred-prosecution agreement with the Justice Department, which will include oversight by a corporate monitor, RTX said Thursday in filing with the US Securities and Exchange Commission.
RTX has set aside $575 million to cover potential penalties that come out of the defective pricing probes and another $384 million for the corruption matter, according to the filing.
The Justice Department in Washington declined to comment. A representative for RTX didn’t immediately respond to a request for comment sent outside of normal business hours.
The Justice Department began investigating Raytheon in October 2020 and its probe looked into pricing claims made by Raytheon for missiles and defense contracts entered into between 2011 and 2013 as well as one from 2017, filings show. Separately, the government has been investigating possible improper payments by Raytheon involving contracts with certain Middle East countries.
Bloomberg reported in June that RTX was in the late stages of a resolution.
--With assistance from Tom Schoenberg.
(Updates with Justice Department declining to comment.)
©2024 Bloomberg L.P.
