Boston, MA 01/30/2014 (wallstreetpr) – Alcoa Inc (NYSE:AA) seems to have hit quite a few hurdles at the outset of 2014. The company is reeling under losses. Adding fuel to the fire are a couple of legal settlements that are taking a toll on Alcoa Inc (NYSE:AA)’s already hard-hit finances. In Friday’s trading, Alcoa dropped by an additional 3.68% to $ 11.51 on the news. But currently, the area of concern for the company is that the U.S DoJ is in conjunction with the SEC are conducting certain probes on the company, around certain alumina contracts with a company named Aluminum Bahrain B.S.C.
Alcoa World Alumina LLC is a company that is an unincorporated bauxite mining & alumina refining-venture between Alcoa Inc (NYSE:AA) and Alumina Limited. Alcoa World Alumina and Chemicals is a company that operates within AWA. A settlement has now been reached between the DoJ and the AWA. As part of this resolution, which will be dependent on court approval, the AWA will now pay $223M. This includes a fine of $209M that is payable in 5 equal installments over a period of 4 years. This total amount of $223 million lies within the range that Alcoa Inc (NYSE:AA) had previously disclosed.
The company recorded a total charge of $103M towards the DOJ investigation. It should be noted that in its filings, the DOJ the Sec has not, in any findings alleged that Alcoa Inc (NYSE:AA) had knowingly engaged in any illegal conduct with regards to this issue. As a matter of fact, the DOJ credited Alcoa Inc (NYSE:AA) for the unhindered cooperation that it had provided them right through the investigation. In addition to this, the department also credited the company for launching its parallel independent probe that was overseen by a special committee that had been appointed by the board of directors.
