Federal prosecutors say they have reached a deal with Gibson Guitar Corp. to drop the criminal case against the instrument manufacturer after it acknowledged its exotic wood imports violated U.S. environmental laws, the Associated Press reported.
Under the agreement, Gibson must pay a $300,000 penalty, forfeit claims to about $262,000 worth of wood seized by federal agents and contribute $50,000 to promote conservation of protected tree species. The agreement comes after 2011 raids at Gibson's Memphis, Tenn., and Nashville, Tenn., facilities by federal agents.
Republicans previously supported CEO Henry Juszkiewicz when he denounced the raids as overzealous federal regulation that threatened American jobs, according to AP.