May 18, 2022

Raytheon, parent of Collins Aerospace, discloses criminal defense financial accounting investigation

Shares of Raytheon Technologies Corp., parent company of Collins Aerospace, Cedar Rapids’ largest employer, fell nearly 7.5% on Wednesday after the defense and aviation giant revealed that its financial accounts was under investigation by the US Department of Justice as part of a criminal investigation.

In a filing Tuesday with the U.S. Securities and Exchange Commission, the Waltham, Massachusetts-based company said it received a criminal summons from the Department of Justice seeking information and documents related to financial accounting, internal financial reporting controls and cost reporting of its missiles. and defense since 2009.

“We are fully cooperating with the DOJ’s investigation,” the company said in the filing.

“At this time, the company is unable to predict the outcome of the investigation.”

Based on the information available to date, Raytheon Technologies has stated that it does not believe the results of the investigation would have a material adverse effect on its financial condition, results of operations or liquidity.

The summons was issued on October 8, the company said,

Raytheon Co., as it was known prior to its merger earlier this year with United Technologies Corp., received an SEC subpoena last year seeking information in an investigation into potentially abusive payments. by Thales-Raytheon Systems “or anyone acting on their behalf” in connection with Thales-Raytheon or Raytheon contracts in “certain Middle Eastern countries since 2014,” the company said.

Thales-Raytheon Systems manufactures control systems for the aerospace industry and is a joint venture of Raytheon and Thales Group.

Earlier this year, the Justice Department informed Raytheon Technologies that it had opened a “parallel investigation,” Raytheon said.

He then received another subpoena from the SEC seeking information and documents, the company said.

“Raytheon Co. maintains a rigorous anti-corruption compliance program, fully cooperates with the SEC investigation, and examines whether there has been any conduct that violates Raytheon Co. policy,” he said.

Workers drive into Raytheon’s facility in Marlborough, Mass. (Associated Press)