With 2015 annual reports recently filed, several companies disclosed information about new or ongoing FCPA-related investigations.
In a development demonstrating the anticorruption risks associated with M&A activity, Platform Specialty Products Corp., a Florida-based chemical company, reported that it is investigating possible FCPA violations by its subsidiary Arysta, which the company acquired in February 2015. Platform discovered the potential issues when implementing post-acquisition internal controls at Arysta. The company is conducting an internal investigation focusing on payments that Arysta made to third-party agents related to its tender business in West Africa. The company stated that it voluntarily disclosed the investigation to the DOJ and the SEC, and is cooperating with authorities. Read more at the FCPA Blog and the WSJ.
In its most recent annual report, Rhode Island-based industrial products company Nortek Inc. reported that it spent $2.3 million in 2015 for legal and other professional services related to an FCPA investigation that involves "certain questionable hospitality, gift and payment practices, and other expenses" by Linear Electronics Co. Ltd., a China-based subsidiary. The company initially disclosed the investigation to the DOJ and SEC in January 2015. Nortek announced that it expects to incur additional investigation-related costs in 2016. Learn more at the FCPA Blog and the WSJ.
Akamai Technologies, Inc., a Massachusetts-based cloud services provider, stated that its internal investigation involving sales practices in an unnamed foreign country remains ongoing. As reported in the March 2015 edition of Red Notice, Akamai initially disclosed the investigation, which includes a review of FCPA compliance requirements, in its 2014 Form 10-K. The company has also stated that it is cooperating with the DOJ and the SEC in the investigation. See more information at the FCPA Blog.
Alere Inc., a global diagnostics and service provider based in Massachusetts, disclosed in a recent Form 8-K filing that, on March 11, 2016, it received a grand jury subpoena from the DOJ in connection with FCPA-related issues in Africa, Asia and Latin America. The subpoena requests documents related to "sales practices and dealings with third parties (including distributors and foreign governmental officials)." Alere says that it is responding to the subpoena and plans to cooperate with the DOJ's investigation. Read more at the WSJ.
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