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Austal USA hit with $24m penalty for fraudulently overstating profits

A littoral combat ship.
A Littoral Combat Ship in the Gulf of Mexico. Photo: Stocktrek/Getty Images

Alexander Barzacanos

1 min read
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The company is accused of falsifying its profits and boosting its stock price by obscuring shipbuilding costs.

Austal USA, an Alabama-based subsidiary of Australian shipbuilding company Austal Limited, pleaded guilty to criminal criminal securities fraud and obstruction of a federal audit for its role in artificially inflating its stock price between 2013 and 2016. Austal Limited was also charged for its role in the fraud.

The company agreed to

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