America was under way off the Azores on 13 December 1800 when she ran against the Formigas Reef and suffered severe damage to her hull. With some difficulty she was refloated with the tide and returned to harbour. On 27 December America's captain and senior officers were court martialled aboard HMS Carnatic, which was anchored off Port Royal, Jamaica. All were acquitted when the court established that the grounding had been caused by errors in the ship's charts, upon which the Reef was marked as being substantially to the south of its actual location.
Following the grounding, America was withdrawn from active service and redesignated as a prison ship. She was decommissioned and broken up in 1807.