RTX discloses SEC probe related to engine recall (NYSE:RTX)
RTX is being investigated by U.S. authorities following its recall of Pratt & Whitney engines because of defects.
The aerospace and defense company in its annual report said the U.S. Securities and Exchange Commission had issued subpoenas as part of a probe into the company’s conduct.
RTX (NYSE:RTX) in July announced that microscopic contaminants had been discovered in powdered metal used by Pratt & Whitney to make high-pressure turbine discs for its Geared Turbofan engines. It said affected planes would need to be grounded while their engines were removed for inspections and possible repairs.
RTX (RTX) said it expected to spend $7 billion to fix the engines and reimburse airlines for losses. The company also estimated its profit would be lowered by $3.5 billion in the next several years.
In its annual report, RTX (RTX) said it had received the subpoenas on Nov. 7, 2023, and Jan. 30, 2024. The SEC demanded engineering, operational, organizational, accounting and financial documents.
RTX (RTX) is responding to the subpoenas and cooperating with the SEC, according to the company.
The investigation is related to last year’s disclosure of the engine problems and related risks as the company worked to fix the problems. Two class-action suits had been filed in response to the public disclosures, RTX (RTX) said.