Tetra Tech EC, Inc., a subsidiary of Tetra Tech, Inc., has reached a settlement agreement with the United States government to resolve civil litigation related to environmental remediation work at the Hunters Point Naval Shipyard in San Francisco. Under the terms of the agreement, Tetra Tech EC will pay $97 million, allocated as $57 million for False Claims Act claims and $40 million for Comprehensive Environmental Response, Compensation, and Liability Act claims. The company plans to fund these payments through cash on hand and its credit facility.

The settlement includes no admission of liability by Tetra Tech EC and is subject to court approval following a 30-day public notice and comment period. The agreement also does not resolve ancillary claims brought by private third-party plaintiffs related to the same services. Tetra Tech EC has initiated legal action against its insurance carrier to recover a portion of the settlement amount, but no assurances have been made regarding reimbursement.