L-3’s EOTech to pay gov’t $25.6 million in fraud case

A soldier pointing a rifle equipped with an EOTech scope.

A soldier pointing a rifle equipped with an EOTech scope.

The parent company of optics maker EOTech agreed to pay the government $25.6 million Tuesday for selling defective optics to military and federal law enforcement agencies.

L-3 Communications Corp., a New York company that holds numerous contracts with the federal government, agreed to settle the matter the same day the civil complaint was filed in a Manhattan federal court, attorneys with the Justice Department told Guns.com.

Since 2004, L-3’s EOTech sold holographic weapons sights that they knew were defective to the Department of Defense, Department of Homeland Security, and the Federal Bureau of Investigation, the lawsuit says. EOTech was paid tens of millions of dollars in government contracts.

The defects caused the optics to fail in both cold and humid environments (effective in temperatures -40 to 140 degrees Fahrenheit), but EOTech claimed it tested the sights in accordance with military standards.

The lawsuit says in sub-zero temperatures the defect distorts the aiming dot within the optic by more than 20 inches fore every 100 yards.

The lawsuit adds that EOTech waited to disclose the problem until 2013, when the company thought they had a solution and then pitched the fix as an upgrade.

A judge is currently reviewing the settlement agreement. More information will be available once the settlement is approved.

L-3 pulls in an estimated $12.6 billion in annual revenue and employees 48,000 people. Guns.com made repeated attempts to contact L-3 representatives, but they could not be reached for comment in time for publication.