Raytheon Company — Pricing Fraud and Double Billing
Raytheon Pays $428 Million for Defense Contract Fraud
Source: U.S. Department of Justice
TL;DR: Raytheon Pays $428 Million for Defense Contract Fraud This case resulted in a $428 Million resolution and demonstrates the impact of whistleblower protections in recovering funds from fraud.
Summary
Raytheon Company agreed to pay $428 million to resolve allegations that it knowingly failed to provide truthful certified cost and pricing data during contract negotiations, resulting in inflated prices for defense contracts. DOJ alleged Raytheon also engaged in double billing on certain contracts. This settlement represents one of the largest procurement fraud recoveries in DOJ history and the second-largest defense procurement fraud recovery ever.
Our Take
Truth in Negotiations Act (TINA) cases often involve deliberate decisions to withhold current, accurate, or complete cost data during negotiations. Insiders typically have access to the actual cost data, pricing proposals, communications about what to disclose, and any analysis showing the gap between certified costs and reality. If you've seen cost proposals that don't reflect what the company actually knew about its costs, preserve the underlying data and any communications about the disclosure decisions.
Read the full article from the original source:
View Original ArticleOpens in a new tab. Content from U.S. Department of Justice.
Notice
The summaries above are based on publicly available information released by the U.S. Department of Justice and are provided for informational purposes only. They do not constitute legal advice, investigative findings, or allegations by Disclosure Strategy. Our commentary reflects general, experience-based observations about how False Claims Act matters commonly arise and is not a statement about any party's liability.