Electronics Production | December 28, 2010
Alcatel-Lucent pays USD 137 million in settlements
Alcatel-Lucent concluded its settlements with the U.S. Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) following their investigations of violations of the Foreign Corrupt Practices Act.
Alcatel-Lucent, S.A. (formerly known as Alcatel S.A.) entered into a deferred prosecution agreement with the DOJ by which the company will be criminally charged with violations of the books and records and internal controls provisions of the FCPA, but prosecution of those charges will be deferred for a three-year period. In addition, 3 Alcatel-Lucent subsidiaries will each plead guilty to a criminal information charging one count of conspiracy to commit anti-bribery, books and records, and internal controls violations of the FCPA. Alcatel-Lucent also agreed to resolve related civil anti-bribery, books and records, and internal controls charges filed by the SEC. Early next year the settlements will be submitted to the U.S. Federal Court for formal approval. The SEC alleges that Alcatel’s subsidiaries used consultants who performed little or no legitimate work to funnel more than USD 8 million in bribes to government officials in order to obtain or retain lucrative telecommunications contracts and other contracts. Alcatel agreed to pay more than USD 45 million to settle the SEC’s charges, and pay an additional USD 92 million to settle criminal charges announced today by the U.S. Department of Justice.