Amid an investigation into its disclosures and accounting practices, Raytheon Co. placed its chief financial officer on leave at the same time that it announced that it had submitted a settlement offer to the Securities and Exchange Commission and settled a shareholder lawsuit.
If approved, the proposed SEC settlement would resolve the commission's investigation, which Raytheon said primarily related to its commuter aircraft business. Without admitting or denying any wrongdoing, Raytheon offered to pay a civil penalty of $12 million and to cease and desist violating securities laws.
The company said Friday that the SEC staff recommended that the commission bring action against senior vice president and chief financial officer Edward S. Pliner and another, unnamed employee described only as a "non-executive." Raytheon placed both individuals on administrative leave, and named vice president and controller Biggs C. Porter as acting CFO.
Meanwhile, Raytheon reached an agreement to settle a class-action securities lawsuit pending in Idaho District Court related to allegations surrounding the July 2000 sale of the company's engineering and construction business to Washington Group International. The settlement, which is subject to court approval, includes a cash payment of $39 million that the company expects to make in the second quarter of 2005.
"Although Raytheon continues to deny liability, the company is pleased to put the uncertainty of the litigation behind it and believes that the decision to settle is in the best interest of its shareholders," a statement issued Friday by the company said.
