Raytheon and Nightwing have agreed to pay $8.4 million to resolve allegations that Raytheon violated the False Claims Act by failing to comply with Department of Defense cybersecurity requirements.
The settlement, which was announced by the Justice Department on Thursday, resolves allegations that Raytheon did not implement mandatory cybersecurity controls on an internal development system that was used to perform unclassified work on 29 defense contracts.
"Cyberthreats have grown in size and reach in recent years, leaving no room for complacency among those in the public sector, private sector, or even among private citizens," U.S. Attorney Edward R. Martin Jr. for the District of Columbia said in a statement. "Government contractors must comply with the cybersecurity rules that govern their performance and be candid about their compliance. This settlement reflects the Government’s commitment to pursue contractors that fail to live up to those expectations."
The federal government accused Raytheon of failing to develop and implement a security plan for the system and of failing to ensure that the system met other cybersecurity requirements, as stipulated in certain sections of the Defense Federal Acquisition Regulation Supplement and the Federal Acquisition Regulation.
"As cyberthreats continue to evolve, it is critical that defense contractors take the required steps to protect sensitive government information from bad actors," acting Assistant Attorney General Yaakov Roth, of the Justice Department's Civil Division, said in a statement. "We will continue our efforts to hold contractors accountable when they fail to honor their DoD cybersecurity commitments."
The government alleged that the failures in compliance took place between 2015 and 2021.
Raytheon is a subsidiary of Arlington, Virginia, based RTX Corporation. In March 2024, RTX Corporation sold its cybersecurity, intelligence and services business, which became part of Dulles, Virginia, based Nightwing.
According to the Department of Justice, the settlement resolves a lawsuit filed under the whistleblower provisions of the False Claims Act, which allows private parties to sue on behalf of the government when they believe a defendant has submitted false claims for government funds. The whistleblower is then entitled to receive a share of any damages recovered.
In this case, the settlement provides for whistleblower Branson Kenneth Fowler Sr., a former director of engineering with Raytheon, to receive a $1,512,000 share of the settlement amount.
Newsmax reached out to RTX for comment but did not receive an immediate reply.