© tom_schmucker dreamstime.com Electronics Production | December 27, 2018
Plantronics to pay $36M to settle SEC investigation
Headset maker Plantronics, announces that Polycom – which it acquired in July – has entered into a settlement with the United States Securities and Exchange Commission with respect to Foreign Corrupt Practices Act issues that Polycom self-reported.
After discovering evidence of possible improper behavior on the part of former employees at its subsidiary in China, Polycom voluntarily reported the matter to the U.S. government, conducted a thorough investigation and cooperated with the authorities. The conduct at issue was limited to Polycom China and occurred prior to Plantronics’ acquisition of Polycom in July 2018 and prior to Polycom going private in 2016. All of the individuals involved had left Polycom by the time Plantronics acquired Polycom, a press release reads. “We are very pleased that the investigation into some of Polycom’s foreign operations has concluded,” said Plantronics CEO Joe Burton. “Plantronics has been, and remains, committed to operating with ethical and financial integrity, and we look forward to the future with Polycom.” The U.S. Department of Justic also made public a letter of declination closing its investigation into Polycom citing among other things Polycom’s voluntary disclosure and full cooperation. Polycom is neither admitting nor denying the SEC’s allegations. As part of resolving these matters, a payment of USD 36 million will come from an escrow secured by Plantronics as part of its acquisition of Polycom.