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Shares of Raytheon Technologies Corp., parent company of Collins Aerospace, Cedar Rapids's largest employer, fell nearly 7.5 percent Wednesday after the defense and aviation giant disclosed that its financial accounting is being investigated by the U.S. Department of Justice in a criminal probe.
In a filing Tuesday with the U.S. Securities and Exchange Commission, the Waltham, Mass.-based company said it received a criminal subpoena from the Justice Department seeking information and documents related to financial accounting, internal controls over financial reporting and cost reporting at its missiles and defense business since 2009.
'We are cooperating fully with the DOJ's investigation,” the company said in the filing.
'At this time, the company is unable to predict the outcome of the investigation.”
Based on information available so far, Raytheon Technologies said it does not believe the results of the inquiry will have a material adverse effect on its financial condition, results of operations or liquidity.
The subpoena was issued Oct. 8, the company said,
Raytheon Co., as it was known before its merger earlier this year with United Technologies Corp., received a subpoena last year from the SEC seeking information in connection with an investigation into possibly improper payments by Thales-Raytheon Systems 'or anyone acting on their behalf” in connection with Thales-Raytheon or Raytheon contracts in 'certain Middle East countries since 2014,” the company said.
Thales-Raytheon Systems makes aerospace control systems and is a joint venture of Raytheon and Thales Group.
Earlier this year, the Justice Department informed Raytheon Technologies it opened a 'parallel investigation,” Raytheon said.
It later received another subpoena from the SEC seeking information and documents, the company said.
'Raytheon Co. maintains a rigorous anti-corruption compliance program, is cooperating fully with the SEC's inquiry and is examining whether there has been any conduct that is in violation of Raytheon Co. policy,” it said.