Fluor to pay $14.5M in SEC settlement

Fluor announced that the company has entered into a settlement agreement with the SEC resolving the previously disclosed SEC investigation of the company. As reflected in the administrative order filed by the SEC, the investigation pertained to the company’s accounting on two lump sum engineering, procurement and construction contracts. In connection with the settlement, the company has agreed to pay a civil penalty of $14.5M. The company established reserves sufficient to fund the settlement during 2022 and expects no material earnings effect during 2023. The SEC’s investigation concerned two projects that are now largely completed and involved historical transactions that the company restated in September 2020. The SEC settlement follows the previous announcement that the U.S. Department of Justice had ended its investigation into the company.