Raytheon Company has agreed to pay over $950 million to resolve federal charges after government investigations into allegations of fraudulent billing practices. The aerospace and defense company was accused of overbilling the government for work performed on various contracts.
The settlement, which was announced on Thursday, includes a $800 million payment to the federal government and an additional $155 million to settle related claims by the state of California. The charges stemmed from a whistleblower lawsuit filed under the False Claims Act, which allows private citizens to sue on behalf of the government and receive a portion of any recovered funds.
According to the Department of Justice, Raytheon allegedly failed to properly account for and bill work done by its employees on government contracts, resulting in inflated costs being passed on to the government. The company also reportedly submitted false claims for payment, leading to allegations of fraud.
In a statement, Raytheon expressed regret over the situation and stated that it has taken steps to address the issues raised by the investigations. The company also emphasized that the settlement does not constitute an admission of wrongdoing.
The settlement is one of the largest ever reached under the False Claims Act and serves as a reminder of the government’s commitment to holding companies accountable for fraudulent practices. The case also highlights the importance of whistleblowers in uncovering wrongdoing and the significant role they play in helping the government recover funds in cases of fraud.
Overall, the resolution of the case represents a significant step in ensuring transparency and accountability in government contracting practices, and serves as a warning to other companies to adhere to strict ethical standards in their dealings with the government.
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