Well that escalated! Hot on the heels of the U.S. Government suing EOTech for the alleged fraud in their sights, specifically in claiming that their sights could work in certain cold weather and humid environments, then trying to cover up this error in an upgrade, the parent company of EOTech, L-3 Communications, based out of New York has agreed to a payout of $25.6 million to the Government. We literally just reported on the lawsuit going through the the courts, and then this agreement has come up. It could be the end of the matter, or this could drag on with both sides negotiating some more. Along with the FBI’s HRT team switching over to Aimpoint sights, things don’t seem to be looking hot for EOTech right now on the federal government front. If you’re interested in reading the full court reading of the case, Soldier Systems has a good write up of the legal discussions.

What will that mean for civilian or LE EOTech users? The problems are being found in extreme weather circumstances, so if you use your EOTech sights for range use, self defense, and hunting, unless your house is in the Arctic circle, or the jungles of Philippines, I don’t see your sights failing anytime soon. Regardless, maybe the responsible thing for EOTech to do, is to publish lists of serial numbers of their sights with the defect so customers can just be aware of what they have.

L-3 Communications Corps, 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.