(RTTNews) - Thursday, Woodward Governor Co. (WGOV: News ), said its wholly owned subsidiary, Woodward MPC, in an agreement with the U.S. Department of Justice has agreed to pay $25 million in compensation and fines to settle criminal and civil cases related to its pre-June 2005 government contract pricing practices. Woodward MPC has also agreed to conditions of a two-year probation.

Woodward MPC, prior to its acquisition by Woodward Governor was doing business as MPC Products Corp. Woodward Governor had reduced the purchase price for MPC Products by the amount which is to be paid as part of the settlement, Fort Collins, Colorado-based equipment manufacturer Woodward said.

According to the settlement approved by the District Court in the Northern District of Illinois, MPC will plead guilty to one count of mail fraud related to its contract pricing practices. However, the criminal case plea agreement, including sentencing is yet to be approved by the District Court. On approval of the plea agreement, all matters related to the DOJ investigation will be concluded.
Chairman and Chief Executive Officer Thomas Gendron said, "The misconduct at issue occurred several years prior to Woodward's acquisition of MPC, and involved individuals who are no longer employees of MPC."

WGOV is currently trading at $25.35, down 1.32% on Nasdaq.

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by RTT Staff Writer

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