Military shipbuilder Austal says investigation settlement in best interest of company

Executives with military shipbuilder Austal say settling an accounting fraud investigation is the best outcome for the company and that new financial controls have been put 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.