RTX Reports SEC Investigation Linked to Engine Recall

By Ben Glickman

RTX is under investigation by U.S. regulators related to its recall of hundreds of Pratt & Whitney engines.

The defense contractor and aerospace company said in its annual report that it had received subpoenas from the U.S. Securities and Exchange Commission related to an investigation into its handling of the engine problems.

RTX in July said that it would need to conduct accelerated inspections and ground planes as a result of an issue related to the powdered metal used to make certain parts.

The company has said it will cost up to $7 billion to repair the engines and compensate airlines affected. RTX also expects to take up to a $3.5 billion hit to profit in the next several years.

RTX said in its annual report that the SEC subpoenas, received on Nov. 7, 2023, and Jan. 30, 2024, requested engineering, operational, organizational, accounting and financial documents.

The company said it is cooperating with the SEC and responding to the subpoenas.

The company said in the filing that the investigation related to the disclosure of the issues last year, its identification of risks linked to those manufacturing processes and the actions taken to correct the risks.

RTX said two securities class-action suits had been filed related to the disclosure of the issues.

Write to Ben Glickman at ben.glickman@wsj.com

(END) Dow Jones Newswires

February 05, 2024 17:30 ET (22:30 GMT)

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