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THE WOODLANDS, Texas, Aug. 15, 2014 (GLOBE NEWSWIRE) --
Layne Christensen Company (Nasdaq:LAYN)
("Layne" or the "Company") announced today that the United States Department of Justice ("DOJ") has decided to not file any charges against the Company in connection with the previously disclosed investigation into potential violations of the Foreign Corrupt Practices Act ("FCPA"). The DOJ has notified Layne that it considers the matter closed.
As previously reported by Layne, in connection with updating its FCPA policy, questions were raised internally in September 2010 about, among other things, the legality of certain payments by Layne to agents and other third parties interacting with government officials in certain countries in Africa. The audit committee of the board of directors engaged outside counsel to conduct an internal investigation to review these payments with assistance from outside accounting firms. Layne has been consistent and forthcoming in providing voluntary disclosure to the DOJ and the Securities and Exchange Commission ("SEC") regarding the results of the investigation, and has cooperated fully with those agencies in connection with their review of the matter. The parallel investigation by the SEC remains open and the Company is actively engaged in settlement discussions with the SEC to resolve this matter.
Layne had previously accrued a reserve of $10.4 million for the settlement of the investigations. Based on the decision by the DOJ, the Company will reduce the accrual related to this investigation by approximately $5.3 million, which will be reflected in Layne's results of operations for the second fiscal quarter ended July 31, 2014.
David A.B. Brown, President & CEO, commented, "We are very pleased to conclude the DOJ investigation without any charges being brought against Layne and we hope to settle the SEC investigation in the near future. From the very beginning, we have maintained a position of full disclosure and complete cooperation with the authorities and have worked diligently to implement remedial measures to enhance our internal controls and compliance efforts. Based on conversations with the DOJ, we understand that our voluntary disclosure, cooperation and remediation efforts have been recognized and appreciated by the staff of the DOJ and that the resolution of the investigation reflects these matters."