Alcatel-Lucent To Pay $137 Million For Bribery
Alcatel-Lucent (NYSE:ALU) is going to be making a payment of over $137 million to settle bribery cases brought forth by U.S. authorities. The case concerns Alcatel-Lucent and its subsidiaries between the 1990s through 2006.
Alcatel-Lucent had reached a settlement with the the Department of Justice (DoJ) and the U.S. SEC. Alcatel-Lucent, Alcatel CIT, Alcatel de Costa Rica, and Alcatel Standard agreed to pay $92 million in case settlements through the Foreign Corrupt Practices Act (FCPA).
Alcatel-Lucent had used third party sales and marketing teams to conduct worldwide business. It turns out that these third party agents bribed customers and officials in other countries. Improper payments were made to win contracts across Costa Rica, Honduras, Malaysia, and Taiwan. Alcatel did not deny the SEC’s allegations, but they have agreed to pay a $45.372 million penalty.
[PC World]This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry