Defense contractor L-3 Communications, through its subsidiary EOTech, knowingly produced flawed gun sights for service members and law enforcement. The company will pay $25.6 million to settle the government’s fraud suit. Interestingly, although L-3 and EOTech’s President Paul Mangano admitted they knew the gun sights failed to perform in cold or humid climates but did not disclose this to the government for several years. Despite this, the government did not file criminal charges.Even worse, L-3 has a heavy misconduct history. The company has 15 instances of misconduct back to 2007, including 6 contract fraud cases. On those cases it paid over $45 million in fines, penalties, and settlements.Also, an L-3 unit was briefly suspended from federal contracting in 2010 for allegedly spying on a military computer network.