Waltham's Raytheon Handed 2nd Subpoena In Federal Investigation

Waltham MA

28 April, 2021

6:05 PM

Description

WALTHAM, MA —Raytheon Technologies Corp., said Tuesday it received a second subpoena as part of a U.S. Department of Justice investigation into accusations that the company's pricing of several missiles and defense business contracts were defective. The Department of Justice subpoenaed the company in the fall asking for documents related to financial accounting and cost reporting since 2009. "The investigation includes potential civil liability for defective pricing for three contracts entered into between 2011 and 2013 by [the company's former integrated defense systems business]," the company's Chief Financial Officer Neil Mitchill said in a call with investors Tuesday, according to a transcript. "As part of the same investigation, we recently received a second subpoena relating to a different IDS contract from 2017." During the call, Raytheon Chief Executive Greg Hayes said the Waltham-based aerospace and defense company was cooperating with the DOJ investigation and had begun its own investigation. "It was alleged that we defectively priced some contracts," he said. "We've looked into it; we think there is potential liability for defective pricing." Hayes said the company didn't think there would be "ongoing impact" to any of the businesses as a result of the investigations, and they were working to make amends. "We think there were one-off events that occurred — should not have occurred, but they did," he said. "And we're going to clean it up and move on." Read the company's December SEC filing.