Layne Christensen will not face charges following U.S. DOJ investigation
THE WOODLANDS, Texas -- Layne Christensen Company announced today that the U.S. Department of Justice 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 regarding the results of the investigation, and has cooperated fully with those agencies. The parallel investigation by the SEC remains open, and the company is actively engaged in settlement discussions with the SEC to resolve this matter.
The company was represented in the investigation by Stinson Leonard Street LLP, with the assistance of BKD LLP, which provided forensic accounting services. PricewaterhouseCoopers LLP provided advice regarding African tax laws and the enhancement of internal controls.