OSG Reaches Settlement With Department of Justice

Tuesday, December 19, 2006
Overseas Shipholding Group, Inc. announced that it has reached a comprehensive settlement with the United States Department of Justice regarding violations stemming from an investigation that began in 2003. Under the agreement, the Company will plead guilty to a total of 33 counts including one charge concerning an improper discharge of oil in 2002 and multiple record-keeping violations, including making false statements, obstruction and conspiracy related to such violations. The settlement concludes a multi-jurisdictional investigation that involved 12 vessels. The Company also agreed to pay a fine in the amount of $27.8 million and pay $9.2 million to designated environmental community service programs. As a result of the agreement, all outstanding charges against OSG as an organization will be settled, including the indictment regarding the Pacific Ruby announced earlier this year. This settlement is subject to the acceptance by federal courts in the District of Massachusetts and Eastern District of Texas.

As previously announced, the Company has reserved $37 million in anticipation of a settlement. OSG does not believe that this settlement will have a material financial impact on its ongoing business, its relations with customers and vendors or any of its contractual arrangements. While OSG was encouraged by the decision on December 4, 2006 by Judge Heartfield in the Eastern District of Texas to dismiss eight of the ten charges against the Company regarding the Company's vessel, Pacific Ruby, OSG concluded that it was in the best interests of its shareholders, employees and customers to agree to a comprehensive settlement.

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter May 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Legal

STX Shipbuilding Likely to Enter Court-lead Restructuring

South Korean shipbuilder STX Offshore & Shipbuilding Co Ltd will likely need to enter court-supervised receivership due to financial difficulties, the firm's lead

SOLAS Container Weight Requirements FAQ

With new rules regarding the declaration of the accurate gross mass of a packed containers due to enter force, the International Maritime Organization (IMO) answers

Primeline Turns Against CNOOC

Primeline Energy Holdings Inc. announces that it has sent a letter to China National Offshore Oil Corporation (CNOOC) and CNOOC China Limited (CCL) (together CNOOC

 
 
Maritime Standards Naval Architecture Navigation Offshore Oil Pipelines Pod Propulsion Port Authority Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0946 sec (11 req/sec)