RTX Corp Faces $200M Fine Over Export Violations

RTX Corp will pay a $200 million fine for violating export laws by sharing sensitive data and products with prohibited countries, including China. The fine relates to mishandling classified defense articles. RTX disclosed the errors and has set aside $1 billion to resolve three legal issues. Half of the fine will fund a compliance program.

RTX Corp has agreed to pay a $200 million fine to settle allegations of violating export laws by exchanging data and products with prohibited countries, including China, according to U.S. State Department records released Thursday.

The penalty arises from RTX's failure to properly classify and control exports of defense articles, including classified ones. The aerospace and defense company voluntarily disclosed these mistakes and informed investors during a July 25 earnings call that it had allocated approximately $1 billion to address three distinct legal matters. These issues were "primarily identified" during the integration of Rockwell Collins and Raytheon Co. into RTX, the company noted.

One specific instance involved sharing information about an aluminum display housing component of the F-22 Raptor Fighter Aircraft with Chinese citizens in Shanghai. The details were found to be more sensitive than initially assessed by RTX employees. As part of resolving these legal matters, RTX will retain independent compliance monitors over the next three years. Half of the imposed fine will fund the company's compliance program.

(With inputs from agencies.)