Applied Materials settles US export probe with Commerce Department for $252.5 million

Applied agreed to pay $252.5 million to the Department of Commerce to resolve allegations that some customer shipments to China from November 2020 to July 2022 did not comply with export rules. The Justice Department and the SEC closed their related investigations without action. Applied attributes the issue to a misunderstanding of how the regulations applied, and the settlement removes a long-running enforcement overhang on the stock.

• Payment of $252.5 million to the Department of Commerce
• Allegations cover shipments to China from November 2020 to July 2022
• DOJ and SEC closed related investigations without action
• Applied says the issue came from a misunderstanding of how the rules applied