Raytheon pays $252M for bribery charges in Qatar

In a significant legal development, RTX Corporation, previously known as Raytheon, has agreed to pay $252 million to the U.S. government to settle allegations of bribery related to contracts in Qatar. The charges stem from actions taken between 2012 and 2016, where employees and agents of the company allegedly offered bribes to a foreign official to secure lucrative contracts with the Qatar Emiri Air Force and Qatar Armed Forces. This included securing four additions to an existing contract with the Gulf Cooperation Council and a $510 million contract for a joint operations center for the Qatari military. As part of the resolution, RTX entered into a deferred prosecution agreement, which requires the company to demonstrate good conduct over the next three and a half years and to promote a culture of ethics and compliance with anti-corruption laws. The company has also agreed to forfeit $36.6 million as part of the settlement. During a federal court hearing in Brooklyn, RTX's lawyers waived their right to an indictment and pleaded not guilty to the charges, without contesting the allegations outlined in the court documents. The company reportedly made approximately $36.7 million in profit from the contract additions and anticipated over $72 million from the joint operations center, although the Qatari government ultimately did not proceed with that deal. This case highlights ongoing concerns regarding corporate compliance with anti-bribery laws and the implications of unethical practices in international business dealings, particularly in the defense sector.