AECOM Technology (ACM) Says Settlement Favorable to Reserve and Updates FY17 Guidance

November 23, 2016 5:12 PM EST
Get Alerts ACM Hot Sheet
Price: $35.96 --0%

Financial Fact:
Diluted (in shares): -309.17M

Today's EPS Names:
Trade ACM Now!
Join SI Premium – FREE

Get daily under-the-radar research with's Stealth Growth Insider Get your 2-Wk Free Trial here.

AECOM Technology (NYSE: ACM) disclosed in an SEC filing:

On November 23, 2016, a qui tam civil lawsuit filed pursuant to the federal False Claims Act was unsealed against URS Energy & Construction, Inc. (now known as AECOM Energy & Construction) and the successor to the former parent corporation of URS Corporation in the U.S. District Court for the Eastern District of Washington. The qui tam provisions of the federal False Claims Act, allow private individuals and former employees to bring lawsuits against government contractors on behalf of the federal government, in which the federal government may decide to intervene. As previously disclosed in AECOM’s periodic reports, the federal government was investigating contractual compliance and technical issues in the design, development and construction of the Waste Treatment Plant at the Department of Energy’s Hanford Nuclear Reservation. As a result of these investigations, in November 2016, the Department of Justice partially intervened in the qui tam lawsuit and contended that URS Energy & Construction and the former URS parent corporation made false claims pertaining to the Waste Treatment Plant contract from February 2007 until June 2013, a period which occurred before AECOM’s acquisition of URS Corporation and its affiliates in October 17, 2014. On November 22, 2016, URS Energy & Construction and the former URS parent corporation settled with the Department of Justice to resolve the dispute without admitting liability and agreed to pay $57,500,000 (plus accrued interest and the relators attorneys’ fees). The settlement was favorable to AECOM’s reserve for this matter. As a result, AECOM is increasing its fiscal year 2017 U.S. GAAP earnings per share guidance to $2.16 to $2.56 and its adjusted earnings per share guidance to $2.80 to $3.20.

(Street sees FY17 EPS of $2.84)

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Corporate News, Guidance, Litigation

Related Entities

Earnings, Definitive Agreement

Add Your Comment