NEW YORK, September 30, 2021 / PRNewswire / – Pomerantz LLP announces action against Raytheon Technologies Corporation (“Raytheon” or the “Company”) (NYSE: RTX) and some of its officers. The complaint filed in The United States District Court for the district Arizona, and registered under the number CV-20-00468-TUC-JCH, has a teaching time of February 10, 2016 by October 27, 2020, including (the “Class Period”), and is conducted on behalf of a class consisting of anyone who:
- Purchased or acquired common stock of Raytheon Company (NYSE: RTN) from the start of the class action period February 10, 2016 until the date the merger between Raytheon Company and United Technologies Corporation on April 3, 2020;
- purchased or acquired common stock of United Technologies Corporation (NYSE: UTX) of June 10, 2019, the first trading day after the merger is announced, up to the completion date of the merger on April 3, 2020; and
- bought or acquired common stock of Raytheon Technologies Corporation (NYSE: RTX) as of the date the merger was completed on April 3, 2020until the end of the class period on October 27, 2020, including to seek damages caused by Defendants violating the federal securities laws and to seek legal remedies under Sections 10 (b) and 20 (a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule. to pursue 10b-5 against the company and certain of its top officials.
on July 27, 2021 the court appointed the state pension system for teachers of Ohio as interim lead plaintiff and appointed Pomerantz LLP as interim lead counsel. (Dkt. No. 30). If you are an investor who has (1) purchased or acquired common stock of Raytheon Company (NYSE: RTN) from the start of the Class Action Period February 10, 2016 until the date the merger between Raytheon Company and United Technologies Corporation on April 3, 2020; (2) purchased or acquired common stock of United Technologies Corporation (NYSE: UTX) of June 10, 2019, the first trading day after the merger is announced, up to the completion date of the merger on April 3, 2020; or (3) purchased or acquired common stock of Raytheon Technologies Corporation (NYSE: RTX) as of the date of the completion of the merger April 3, 2020until the end of the class period on October 27, 2020, you have up October 21, 2021 ask the court to appoint you as the class action non-preliminary lead plaintiff. A copy of the complaint is available at www.pomerantzlaw.com. To discuss this action, please contact Robert S. Willoughby at firstname.lastname@example.org or 888.476.6529 (or 888.4-POMLAW), toll-free, extension. 7980. Inquiries by email are encouraged to include their postal address, telephone number, and the number of shares purchased.
[Click here for information about the class action]
Raytheon purports to be an aerospace and defense company providing advanced systems and services to commercial, military and government customers worldwide. The company’s four main businesses include the Raytheon Missiles and Defense segment, which designs, develops, integrates and manufactures missile and combat systems for the US armed forces The United States and allied nations.
While in class, Raytheon earned much of its income from contracts it received from the US government. US government contracts are subject to rigorous scrutiny, and contractors must comply with all applicable laws and regulations that govern the acquisition of goods and services by the government. These laws and regulations have a wide range of requirements, many of which apply only to government contracts. Failure to comply with these requirements can have serious consequences including, but not limited to, reduction in contract value, forfeiture of profits, and suspension of future government contracts. Government contractors are also subject to reviews and investigations by US government agencies to ensure compliance with contracts. During the class action period, Raytheon repeatedly committed outrageous misconduct relating to its contracts with the US government. The misconduct included several inappropriate practices aimed at overburdening the government under existing contracts. Specifically, Raytheon has double-billed the government by incorrectly coding labor costs, purchasing and incorrectly labeling goods as services to charge a higher markup and avoid certain registration and regulatory requirements, and making unnecessary purchases for materials that do not include the Required government approval was scheduled to arrive after the end date of the task orders. Raytheon also embezzled funds, failed to subcontract tenders, purposely extended projects to increase estimates upon completion, and did business with overseas companies that directly violated the president’s orders. This misconduct resulted in many key financial metrics such as revenue, operating income and operating expenses being grossly overestimated. Instead of exposing the misconduct, Raytheon disguised it by manipulating contracts in advance of government reviews and audits. This frivolity included manipulating data and other information in the contracts.
The lawsuit alleges that during the class action period the defendants repeatedly made false and misleading statements about the effectiveness of Raytheon’s internal controls over financial reporting and disclosure controls and processes, as well as a number of relevant financial metrics. Contrary to what Defendants made to investors, the aforementioned internal controls over financial reporting and disclosure controls and procedures were ineffective and did not provide reasonable assurance that transactions were properly executed and / or recorded. Raytheon was not entitled to any revenue from its government contracts due to abuse, misappropriation, and violations of the prescribed protocols and parameters of those government contracts. The clearly excessive disclosure of reported sales resulted in incorrect disclosure of other key financial metrics such as operating profit, operating margin, operating profit and net profit. The misconduct resulted in substantial fines and other punitive measures against Raytheon, in addition to future government contract bans.
on October 27, 2020During after-market hours, Raytheon filed its Quarterly Report on Form 10-Q with the SEC for the past quarter September 30, 2020 (the “3Q20 10-Q”). The 3Q20 10-Q announced a criminal investigation by the DOJ against the company, essentially stating:
on October 8, 2020, the company received a criminal subpoena from the DOJ requesting information and documents related to an investigation into financial accounting, internal controls over financial reporting, and expense reporting related to the Raytheon Company’s missile and defense business since 2009. We are fully collaborating with the DOJ Investigation. At this time, the company cannot predict the outcome of the investigation. However, based on the information available to date, we do not assume that the results of this investigation will have a material negative impact on our financial, earnings or liquidity position.
As a result of this news, the Raytheon share price has fallen $ 4.19 per share, or about 7% to close at $ 52.34 per share October 28, 2020.
Pomerantz LLP, with offices in new York, Chicago, The angel, Paris, and Tel Aviv, is recognized as one of the leading law firms in corporate, securities and antitrust litigation. Founded by the late Abraham L. PomerantzKnown as the Dean of the Class Action Chamber, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues the tradition he founded and fights for the rights of victims of securities fraud, breaches of duty of loyalty and corporate misconduct. The company has collected numerous millions of dollars in damages on behalf of class members. See www.pomlaw.com.
Robert S. Willoughby
888-476-6529 ext. 7980
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SOURCE Pomerantz LLP