U.S. Securities & Exchange Commission
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U.S. Securities and Exchange Commission

Raytheon Company et al.

On June 28, 2006, the SEC filed a settled civil enforcement action against Raytheon Company, Daniel P. Burnham (Raytheon's former CEO), and Aldo R. Servello (a former financial officer of a Raytheon subsidiary). On March 15, 2007, the SEC filed additional settled civil enforcement actions against Franklyn A. Caine, Edward S. Pliner, and James E. Gray, all former financial officers of Raytheon. According to the SEC's complaints, in periodic reports filed with the Commission from 1997 to 2001, Raytheon made false and misleading disclosures and used improper accounting practices that operated as a fraud by failing to adequately and accurately disclose the company's declining financial results and the deteriorating business of Raytheon's commercial aircraft subsidiary, RAC. The SEC also charged that certain of these disclosures and accounting practices were undertaken with the knowledge of Burnham, Servello, Caine, Pliner, and Gray. For more information about the SEC's actions, you can read Litigation Releases No. 19747 (June 28, 2006) and No. 20041 (March 15, 2007).

As part of the settlements with the SEC, on August 23, 2006 and March 16, 2007, the Court entered Final Judgments as to Defendants Raytheon Company, Daniel P. Burnham, Aldo R. Servello, Franklyn A. Caine, Edward S. Pliner and James E. Gray. Pursuant to the Final Judgments, Defendants paid a total of $14,776,840.65 in disgorgement and penalties. Each Final Judgment provided that the monies may be distributed to harmed investors pursuant to the Fair Fund provisions of Section 308(a) of the Sarbanes-Oxley Act of 2002. On July 17, 2008, the Court appointed Epiq Systems as Distribution Agent to oversee the Fair Fund distribution process, based upon a plan of distribution to be proposed by the Commission and approved by the Court. On May 28, 2009, the Court approved the plan of distribution.

Raytheon investors can read a Notice about the distribution, including a Proof of Claim Form, by visiting Epiq's website at www.raytheoncompanydistributionfund.com. Additional information can be obtained by calling Epiq at 1 (866) 329-0166, or writing to: SEC/Raytheon Fair Fund, Distribution Agent, P.O. Box 3266, Portland, OR 97208-3266. The last date by which you may submit a claim to participate in this distribution (i.e. the claims bar date) has been extended to February 1, 2010.



Modified: 12/23/2009