Austal USA, an Alabama-based shipbuilder, has agreed to pay a $24 million fine to settle an accounting fraud investigation by the U.S. Department of Justice. From 2013 to July 2016, Austal USA misled shareholders and investors about its financial condition. The company pleaded guilty to securities fraud and obstruction of a federal audit.

Austal USA engaged in a scheme to inflate profits on ships built for the U.S. Navy, leading to false financial reporting. Austal USA LLC, a subsidiary of Australia-based Austal Limited, builds littoral combat ships for the Navy. The company artificially lowered cost estimates, overstating profitability.

Despite a recommended penalty of $73 million, Austal USA’s inability to pay led to a reduced fine of $24 million. The company also faces $24 million in restitution for shareholder losses. Austal USA agreed to a compliance monitor and ethics program. Three former executives indicted for fraud are awaiting trial.

A media representative for Austal Limited did not respond to an email request for comment.