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Raytheon suspends CFO; tries to settle inquiry
The company says it offered $12-million in a settlement with the SEC over an inquiry into its accounting practices.
Associated Press
Published April 16, 2005
BOSTON - Shares in defense contractor Raytheon Co. dipped Friday after the company placed its chief financial officer on leave and offered to settle a government inquiry into accounting practices at one of its units.
Separately, Raytheon also said Friday it has agreed to pay $39-million to settle a shareholder lawsuit related to the July 2000 sale of its engineering and construction business to Washington Group International.
Edward Pliner, Raytheon's senior vice president and CFO since 2002, was placed on administrative leave, effective immediately, spokesman James Fetig said. Another employee was also suspended, but Fetig did not identify that person except to say that it was not an executive officer.
Vice president and controller Biggs Porter will serve as acting CFO.
Raytheon said it offered to pay $12-million as part of a settlement with the Securities and Exchange Commission over an inquiry into the accounting practices of its commuter aircraft business. Raytheon said the SEC staff has made a preliminary decision to recommend that the full commission bring action against the employees.
Both are being given the opportunity to respond to the SEC staff in writing, Raytheon said.
Fetig declined to comment further on the reason for Pliner's suspension and said "the period of leave has not been determined."
The timing of the announcement about Pliner, 46, and the lawsuit settlement "was pure coincidence," he said.
The company also said it would consent to a cease-and-desist order concerning accounting violations without admitting wrongdoing. The settlement must still gain SEC approval.
Efforts to reach Pliner for comment were unsuccessful.
Raytheon disclosed in September 2003 that the SEC had launched a formal probe into the timing of revenue recognition at Raytheon Aircraft Co. from 1997 to 2001.
Raytheon shares fell 93 cents, or 2.5 percent, to close at $36.83 in Friday trading on the New York Stock Exchange.
They have traded in a range of $30.78 and $41.89 over the past 52 weeks.
[Last modified April 16, 2005, 01:24:50]
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