April 24, 2012 (Update) -- On April 19, 2012, Layne Christensen Company said it accrued a $3.7 million liability based on, among other things, the results of its own internal investigation and an analysis of recent and similar FCPA settlements, of the amount that it may be required to disgorge to the SEC in estimated benefits, plus interest thereon. However, Layne Christensen Company also said that in addition to the ultimate liability from the disgorgement and related interest, it believes that it could be further liable for fines and penalties as part of any settlement and the final settlement could be significantly higher than the liability accrued to date.

Shares of Layne Christensen Company (NASDAQ:LAYN) closed on April 19, 2012 at $20.29 per share, down from its current 52weekhigh of $32.43 per share.

March 26, 2012 (Update) -- On March 23, 2012, Layne Christensen Company said in a filing with the SEC that its internal investigation has found documents and information suggesting that improper payments were made over a considerable period of time, by or on behalf of, certain foreign subsidiaries of Layne Christensen Company to agents and other third parties interacting with government officials in certain countries in Africa relating to the payment of taxes, the importing of equipment and the employment of expatriates.

Shares of Layne Christensen Company (NASDAQ:LAYN) closed on Friday, March 23, 2012 at $21.96 per share, down from its current 52weekhigh of $38.00 per share.

San Diego, Dec. 19, 2009 (Shareholders Foundation) -- After Layne Christensen Company disclosed in a regulatory filing that certain payments by the company to customs clearing agents in connection with importing equipment into the Democratic Republic of Congo potentially might have violated the U.S. Foreign Corrupt Practices Act, which prohibits companies from making improper payments to foreign officials for the purpose of obtaining or keeping business, an investigation on behalf of investors in Layne Christensen Company (NASDAQ:LAYN) was announced in effort to hold certain officers and directors of Layne Christensen Company liable for any possible foreign bribery fines, civil and criminal penalties, equitable remedies, including profit disgorgement, and other financial damages.

According to the investigation by a law firm the investigation focuses on whether Layne Christensens directors and officers were aware, or should have been aware, of any improper payments to foreign government officials. Layne Christensen Company said in the filing with the U.S. Securities and Exchange Commission that in connection with Layne Christensen Company updating its Foreign Corrupt Practices Act ('FCPA') policy, questions were raised internally in late September 2010 about, among other things, the legality of certain payments to customs clearing agents in connection with importing equipment into the Democratic Republic of Congo and other countries in Africa. Further Layne Christensen Company said it has contacted the Securities and Exchange Commission ('SEC') and the U.S. Department of Justice ('DOJ') to inform them of this matter.
According to the Justice Department the Foreign Corrupt Practices Act was enacted for the purpose of making it unlawful for certain classes of persons and entities to make payments to foreign government officials to assist in obtaining or retaining business. Specifically, the anti-bribery provisions of the FCPA prohibit the willful use of the mails or any means of instrumentality of interstate commerce corruptly in furtherance of any offer, payment, promise to payto a foreign official to influence the foreign official in his or her official capacity to secure any improper advantage in order to assist in obtaining or retaining business for or with, or directing business to, any person.
Additionally under the Dodd-Frank Wall Street Reform and Consumer Protection Act signed into law in July the SEC can award between 10 percent and 30 percent of any monetary sanctions of more than $1 million to whistleblowers who provide original information leading to a successful SEC enforcement, so the investigation. Whistleblowers may remain completely anonymous and work with the SEC through an attorney and under the new law, so the investigation, whistleblowers are also granted expanded rights and protections against employer retaliation when disclosing information of corporate wrongdoing to the SEC.

Layne Christensens 12months Total Revenue went from $722.77million reported on January 31, 2007 to $866.42million reported on Jan 31, 2010. Its Net Income decreased over the same timeframe from $26.25million to $1.35million. Layne Christensen Company reported for the past six months ending on July 31, 2010 a combined Total Revenue of $484.02million with a 6months combined Net Income of $13.02million.

Shares of Layne Christensen Company (NASDAQ:LAYN) traded recently at $33.90 per share. But Layne Christensen Co shares traded during 2008 and 2007 well above $50 per share on several occasions.