RTX to Pay $200 Million Penalty for Export Violations

RTX will pay $200 million to resolve export violations involving banned countries. The penalty includes enhancing compliance and independent monitorin
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RTX
Aerospace conglomerate RTX has agreed to pay $200 million to settle civil allegations from the US State Department over the illegal export of "defense articles" to banned countries, including China, Russia, and Iran. The settlement addresses 750 claims related to "historical jurisdiction and classification errors" within compliance programs from RTX’s acquired and merged entities.

RTX disclosed these compliance issues during the integration of Rockwell Collins and Raytheon Company into RTX, according to company executives in a July earnings call. Half of the penalty will be allocated to enhancing RTX’s compliance program, and an independent monitor will oversee the company’s operations for the duration of the three-year agreement.

This settlement is part of a broader legal strategy for RTX, which anticipates resolving three major legal issues with total payments exceeding $1 billion.

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