Current:Home > ContactNovaQuant-Military shipbuilder Austal says investigation settlement in best interest of company -Blueprint Money Mastery
NovaQuant-Military shipbuilder Austal says investigation settlement in best interest of company
Benjamin Ashford View
Date:2025-04-07 20:39:58
MOBILE,NovaQuant Ala. (AP) — Executives with military shipbuilder Austal said settling an accounting fraud investigation, which included an agreement to pay a $24 million penalty, is the best outcome for the company and that new controls are in place.
Austal USA, a subsidiary of Australia-based Austal Limited, pleaded guilty to one count of securities fraud and one count of obstruction of a federal audit to settle an accounting fraud case. Austal USA agreed to pay a penalty of $24 million, according to the U.S. Justice Department.
Restitution will also be paid to Austal shareholders. However, the restitution will be paid from the penalty, so the company will pay a total of $24 million.
“Settling this action is the best outcome for Austal. Upon learning of this issue, Austal conducted its own independent investigation. The responsible individuals are no longer with the Company, and we have made numerous governance changes to prevent similar issues from occurring again,” John Rothwell, the former chairman of Austal Limited who now serves as non-executive director of the board, said in a statement issued by the company.
Austal builds littoral combat ships that are designed to operate in shallow coastal waters.
“The investigations focused on conduct that occurred over 8 years ago, and with a large order book of work ahead of us, we need to concentrate on the future — not the past,” Rothwell added.
The Justice Department said that from 2013 through July 2016, Austal USA misled shareholders and investors about the company’s financial condition. The Justice Department said Austal USA artificially lowered cost estimates, despite rising shipbuilding costs, to meet its revenue budget and projections. That had the impact of falsely overstating Austal USA’s profitability on the ships and Austal Limited’s earnings reported in its public financial statements.
The U.S. Securities and Exchange Commission will handle the distribution of funds to harmed investors, the Justice Department said.
Austal USA has also agreed to retain an independent compliance monitor for three years and implement a compliance and ethics program.
Three former Austal USA executives were indicted last year on accounting fraud charges. They are awaiting trial.
veryGood! (4)
Related
- What do we know about the mysterious drones reported flying over New Jersey?
- Cindy Crawford Weighs in on Austin Butler’s Elvis Accent
- Kamala Harris' first campaign ad features Beyoncé's song 'Freedom': 'We choose freedom'
- Inside Christian McCaffrey’s Winning Formula: Motivation, Focus & Recovery
- San Francisco names street for Associated Press photographer who captured the iconic Iwo Jima photo
- 10 to watch: Why Olympian Jahmal Harvey gives USA Boxing hope to end gold-medal drought
- Transit and environmental advocates sue NY governor over decision to halt Manhattan congestion toll
- Squatter gets 40 years for illegally taking over Panama City Beach condo in Florida
- Trump wants to turn the clock on daylight saving time
- Back-to-school shopping 2024 sales tax holidays: Tennessee, Florida and Ohio next up
Ranking
- What do we know about the mysterious drones reported flying over New Jersey?
- Wife who pled guilty to killing UConn professor found dead hours before sentencing: Police
- Automakers hit ‘significant storm,’ as buyers reject lofty prices at time of huge capital outlays
- Video game performers will go on strike over artificial intelligence concerns
- Juan Soto praise of Mets' future a tough sight for Yankees, but World Series goal remains
- S&P and Nasdaq close at multiweek lows as Tesla, Alphabet weigh heavily
- Authorities will investigate after Kansas police killed a man who barricaded himself in a garage
- 2024 Olympics: Team USA’s Stars Share How They Prepare for Their Gold Medal-Worthy Performances
Recommendation
Are Instagram, Facebook and WhatsApp down? Meta says most issues resolved after outages
Netanyahu meets with Biden and Harris to narrow gaps on a Gaza war cease-fire deal
Yellowstone shuts down Biscuit Basin for summer after hydrothermal explosion damaged boardwalk
Wayne Brady Shares He Privately Welcomed a Son With His Ex-Girlfriend
Former Danish minister for Greenland discusses Trump's push to acquire island
Locked out of town hall, 1st Black mayor of a small Alabama town returns to office
Home goods retailer Conn's files for bankruptcy, plans to close at least 70 stores
Exclusive: Tennis star Coco Gauff opens up on what her Olympic debut at Paris Games means