Former Austal USA President Craig Perciavalle

Former Austal USA President Craig Perciavalle 

MOBILE, Ala. (WALA) -- The President of Mobile's largest private employer stepped down on Monday after an investigation by lawyers engaged by Austal.

Craig Perciavalle, the leader at Austal USA, resigned after its own investigation into the company's Littoral Combat Ship program.

The company said it found the costs for the ship were underestimated because of additional costs to meet U.S. Navy requirements. The investigation also found Austal misallocated certain labor hours and the company acknowledged it didn't meet all of the required military specifications on certain valves in 11 of the vessels. The Navy later accepted the valves.

Austal said it has taken action to rectify the issues.

Chief Financial Officer Rusty Murdaugh has been appointed as interim president.

According to Austal, there are also investigations underway by the U.S. Department of Justice, the Securities Exchange Commission, and the Australian Securities and Investments Commission are focused on 'historical matters' of the LCS program before July 2016.

In January of 2019, investigators raided Austal USA in Mobile. It's unclear if that's related to the DOJ or SEC investigations.

Austal said it is working with authorities, but it's not possible to predict what, if any, action they make take when the investigation is complete.

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