Lockheed settles UAE missile sale charges

WASHINGTON (Reuters) - Lockheed Martin Corp (LMT.N) will pay $4 million to settle charges it violated arms export laws through actions it took to sell Hellfire missiles to the United Arab Emirates, the U.S State Department said on Friday.

The company voluntarily disclosed an unauthorized proposal to sell significant military equipment, a failure to comply with requirements to protect classified information, unauthorized export of classified and unclassified data, and a failure to obtain required certificates, according to a statement from the State Department.

The company also disclosed it released classified information regarding the Joint Air-to-Surface Standoff Missile, the department said.

One million dollars of the penalty is suspended on condition it is used for remedial measures. Lockheed agreed to the settlement without admitting or denying the allegations.

After discovering the potential violations, which were connected to Lockheed's fire control and missile company in Orlando, Fla., the company voluntarily informed the State Department, said Lockheed Martin spokesman Jeff Adams.

"We are committed to a vigorous import and export compliance program," said Adams. "No compliance program will ever completely eliminate human error."

Lockheed Martin is required under the settlement to appoint an internal compliance officer for a term of at least two years and must conduct an internal review of its compliance resources for four of its business units.

Lockheed will also be subject to an independent audit within 24 months of implementing the measures.

(Reporting by Georgina Coolidge; Editing by Andre Grenon)