This is pretty costly for the arts-and-crafts chain.

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Hobby Lobby will pony up $3 million to settle a federal case over smuggled relics from Iraq that it bought.

Along with the cash, the Oklahoma-based retailer will give up thousands of other clay antiquities it purchased seven years ago.

According to the article from CNN, Hobby Lobby President Steve Green said in a statement that the chain made "regrettable mistakes," admitting, "We should have exercised more oversight and carefully questioned how the acquisitions were handled."

This isn't the first time Hobby Lobby has been in the headlines. Back in 2014 it won a Supreme Court religious freedom case over having to provide contraception for employees.

The owners of the chain also put up $500 million for a Museum of the Bible that's set to open this fall in Washington.