Alabama's Austal USA to Pay $24M Fine for Accounting Fraud

Austal USA, an Alabama-based shipbuilder for the US Navy, has admitted to accounting fraud and will pay a $24 million fine. The company misled shareholders and investors from 2013 to 2016. They have agreed to a compliance program, and three former executives have been indicted.

Alabama-based shipbuilder Austal USA, which manufactures vessels for the US Navy, has admitted to accounting fraud and agreed to a $24 million fine, the US Department of Justice stated on Tuesday. The penalty resolves an investigation into the company's wrongdoing between 2013 and 2016.

Austal USA, a subsidiary of Australia's Austal Limited, was found guilty of conspiring to inflate its profits and misleading investors and auditors. According to the Department of Justice, the company's efforts to present false financial results impacted both its own reported profitability and Austal Limited's public financial statements.

In addition to the fine, Austal USA will implement a compliance and ethics program and retain an independent compliance monitor for three years. Three former executives are currently awaiting trial on related charges. An email to a media representative for Austal Limited was not immediately returned.

(With inputs from agencies.)