Alcatel-Lucent agreed to pay $137.4 million and change its proced...
Alcatel-Lucent agreed to pay $137.4 million and change its procedures to avoid U.S. prosecution on charges involving bribe payments in Costa Rica, Taiwan and Kenya, the company said in an SEC filing. Its management has adopted strong compliance and…
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training programs to prevent any recurrence, a spokeswoman said. Within months of becoming CEO, Ben Verwaayen announced that “we will no longer conduct our business through the use of sales and marketing agents and consultants,” she said. Three subsidiaries -- Alcatel-Lucent France, Alcatel-Lucent Trade and Alcatel Centroamerica -- will plead guilty to violating the Foreign Corrupt Practices Act’s anti-bribery provisions, the filing says. The company is cooperating with U.S., French and Costa Rican authorities. Under an agreement in principle, the Justice Department would defer prosecution of Alcatel-Lucent on charges that it violated the internal controls and the books and records provisions of the Foreign Corrupt Practices Act. The company would be on probation three years and agree to work with a French anti-corruption monitor. The company is still working on final agreements, the spokeswoman said. “There can be no assurances, however, that final agreements will be reached with the agencies or accepted in court,” according to the filing. Under the Justice Department agreement, the company would pay a $92 million criminal fine over three years. It also would enter into a consent decree with the SEC and pay $45.4 million.