Brown, LLC Assists the Department of Justice in Securing a $950 Million False Claims Act Settlement Against Raytheon

Raytheon Company, a subsidiary of defense contractor RTX, has agreed to pay over $950 million to resolve multiple investigations by the Department of Justice (DOJ) involving fraud, foreign bribery, and violations of export control laws. This resolution includes two Deferred Prosecution Agreements (DPAs): one addressing defective pricing and the other covering breaches of the Foreign Corrupt Practices Act (FCPA) and the Arms Export Control Act (AECA). The settlement reflects the gravity with which the DOJ addresses financial misconduct.

Portions of the case arose under the False Claims Act (FCA), with whistleblower law firm Brown, LLC representing the relator. Jason T. Brown, the firm’s managing partner and a former FBI Special Agent, emphasized the importance of whistleblower actions:

“Cases like this rely on courageous insiders stepping forward to blow the whistle. We had the privilege of working with a great whistleblower and an amazing team at the Department of Justice, including Art Coulter, Brian LaMacchia, and Jared Wiesner, who worked tirelessly to bring this matter to resolution on behalf of taxpayers.”

The settlement documents allege that Raytheon provided false information during negotiations with the Department of Defense (DOD) for contracts, including those involving the PATRIOT missile systems, leading to improper financial gains.

Additionally, Raytheon was allegedly implicated in a bribery scheme involving a high-ranking official in Qatar’s Armed Forces from 2012 to 2016. The company allegedly used sham subcontracting arrangements and teaming agreements to facilitate bribes, violating the Foreign Corrupt Practices Act.

As part of the DPAs, Raytheon must pay significant civil penalties and retain an independent compliance monitor for three years. The agreements also require Raytheon to improve its compliance programs and report any additional misconduct to the DOJ.

This settlement highlights the vital role whistleblowers play in uncovering corporate fraud, as exemplified by the efforts of the relator, a former Raytheon employee. Under the False Claims Act, whistleblowers (relators) may receive up to 30% of the government’s recovery as a reward for their contributions.

Pat Almonrode, chair of Brown, LLC’s qui tam department, praised the relator’s dedication:

“We’re proud to have worked with such a courageous and determined relator, who remained steadfast throughout this challenging process and made significant contributions to the government’s investigation. This case demonstrates the strength of public-private cooperation under the False Claims Act and the impact of that partnership in returning taxpayer funds.”

The case docket number is 21-cv-10690-PBS.

Brown, LLC is one of the nation’s leading whistleblower firms, with several DOJ alumni on its team, handling cases nationwide.