Austal reaches $49M deal with DOJ, SEC over accounting, securities fraud, false claims
By 
Aaron Nicodemus2024-08-27T21:40:00
The U.S.-based subsidiary of Australian defense contractor Austal will pay $48.8 million in fines and restitution to settle allegations that it committed accounting and securities fraud, misled federal auditors, and violated the False Claims Act.
The DOJ ordered Alabama-based Austal USA, which builds vessels for the U.S. Navy and Coast Guard, to pay a $24 million fine and $24 million in restitution, the agency said in a press release Tuesday. The company also agreed to a $24 million settlement with the Securities and Exchange Commission (SEC) to resolve allegations that its conduct also violated antifraud provisions of the Securities Exchange Act.
In a separate settlement, Austal will pay more than $811,000 to settle a claim by the DOJ that it invoiced for butterfly valves on five Navy vessels built by the firm in 2011 that did not meet military requirements.
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