Fluor Corporation (NYSE: FLR) announced today that it has entered into a
settlement to end a civil lawsuit involving the U.S. Department of
Justice. The case, initiated in March 2000 by a former employee, was
settled for $12.5 million, resolving a dispute relating to Fluor's
distribution of overhead expenses to government contracts between 1995
and 1998. The case had been under court-ordered seal.
"This settlement avoids substantial further litigation costs in what
could have been a lengthy and complex legal proceeding," said Fluor
General Counsel Larry Fisher. "After careful management consideration
and review, it was determined that a settlement without admitting any
wrongdoing would allow the company to focus on current and future
operations without further distraction."
"Fluor's government accounting practices are well documented and have
been continuously reviewed and accepted by government regulators, as
well as third- party experts, and in this case, we believe that we would
have ultimately prevailed. The U.S. Government is an important client
for Fluor, and we hope this brings closure so all parties involved can
move on," said Fisher.
Fluor management emphasized that the settlement relates to operations in
the late 1990s and does not impact current operations. A pre-tax charge
of approximately $5 million will be taken in the third quarter to
account for the unreserved portion of the settlement. The impact of this
charge was not included in Fluor's most recent earnings guidance issued
in its second quarter earnings release.
Fluor Corporation (NYSE: FLR) provides services on a global basis in the
fields of engineering, procurement, construction, operations,
maintenance and project management. Headquartered in Aliso Viejo,
California, Fluor is a FORTUNE 500 company with revenues of $9.4 billion
in 2004. For more information, visit www.fluor.com.
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CONTACT:
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Lisa
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Boyette/Leann Vandergrift
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Media Relations
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949.349.3652/949.349.7420
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Ken Lockwood
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Investor Relations
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949.349.3815
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Lisa Boyette, +1-949-349-3652, or Leann Vandergrift, +1-949-349-7420, both MediaRelations, or Ken Lockwood, Investor Relations, +1-949-349-3815, all of FluorCorporation