L-3 Communications and its EOTech subsidiary agreed to pay $25.6 million to settle claims of defrauding the Departments of Defense and Homeland Security and the FBI by selling them defective combat optical sights. The government alleged that L-3 and EOTech violated the False Claims Act by concealing defects that caused the sights to fail in extreme cold and humidity. As part of the settlement, L-3, EOTech, and EOTech president Paul Mangano admitted that they continued to sell the sights to the government for several years after discovering the defects.