UTC Says Hefty Fine for Alleged Fraud Will Hurt
United Technologies Corp. says a federal court ordering it to pay $473 million plus interest to compensate for alleged fraud in its sale of fighter jet engines will cut revenue and profit.
Judge Thomas M. Rose of the U.S. Southern District Court of Ohio issued the order Monday. The Hartford, Conn., aerospace company said in a regulatory filing Tuesday that it will appeal the order. With damages, penalties and interest, United Technologies said the penalty would rise to about $660 million.
The Justice Department said that United Technologies subsidiary Pratt & Whitney violated the False Claims Act, resulting in alleged overpayments for F100 jet engines from 1985 to 1990.
Rose said an earlier court order found Pratt & Whitney fraudulently asserted its prices were substantiated by recent data.
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