U.S. approves $7.75 million MTS Systems settlement

August 31, 2012 at 1:05AM

The tentative $7.75 million settlement between MTS Systems Corp. and the U.S. Department of Justice for export law violations received final approval Thursday from the U.S. attorney's office for Minnesota.

Separately, the attorney's office said it would not pursue criminal prosecution of the Eden Prairie firm unless further criminal activity is uncovered.

In March, after a yearlong investigation, MTS pleaded guilty to two misdemeanor charges that it made false or misleading export control filings with the Department of Commerce. In the plea, the manufacturer of sophisticated equipment-testing products admitted that it failed to disclose, as required by federal law, that its equipment might be shipped overseas to customers involved in nuclear activities.

A ban on bidding on government contracts, a small part of MTS's business, has been lifted.

MTS CEO Jeff Graves told Wall Street analysts earlier this month that the federal case is behind the company and that sales are growing and prospects are positive.

DAVID PHELPS

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