The United Parcel Service will pay up to a $45 million penalty for improperly valuing a business unit, the U.S. Securities and Exchange Commission (SEC) said on Friday.

United Parcel Service Inc. will pay $45 million to settle charges that it improperly valued its freight division, the Securities and Exchange Commission announced Friday.

UPS has agreed to pay $45 million to settle a complaint with the U.S. Securities and Exchange Commission, which alleges the Sandy Springs-based shipper improperly valued one of its businesses.

The Securities and Exchange Commission (SEC) said on Friday that United Parcel Service Inc. ($UPS) is facing a penalty of $45 million for materially misrepresenting its earnings as it failed to follow generally accepted accounting principles (GAAP) in valuing one of its worst performing businesses.