The first time ABB resolved a Foreign Corrupt Practices Act enforcement action was in 2004 concerning conduct in Nigeria, Angola and Kazakhstan.
The second time ABB resolved an FCPA enforcement action was in 2010 concerning conduct in Mexico as well as in connection with the Iraqi U.N. Oil for Food program.
The third time ABB resolved an FCPA enforcement action was in 2022 concerning conduct in South Africa. The criminal charges were resolved through a three year deferred prosecution agreement. In the DPA, the DOJ stated: “based on the Company’s remediation and the state of its compliance program, and the Company’s agreement to report to the Offices … the Offices determined that an independent compliance monitor is unnecessary;”
Even so, in the DPA, ABB had a variety of compliance and reporting obligations imposed upon it during the term of the DPA.
Recently, the DOJ moved to dismiss the action.
In pertinent part, the June 18th motion stated:
The DPA provided that the Government would not continue the criminal prosecution against ABB and would move to dismiss the Information within six months of the expiration of the DPA if ABB fully complied with all of its obligations under the DPA. See DPA ¶ 14.
The term of the DPA is scheduled to expire on December 2, 2025.
On or about June 2, 2025, ABB’s Chief Executive Officer and Chief Financial Officer certified to the Government that ABB has met its disclosure obligations pursuant to paragraph 6 of the DPA.
On or about June 2, 2025, ABB’s Chief Executive Officer and Chief Integrity Officer certified to the Government that ABB has met its compliance obligations pursuant to paragraphs 9, 10 and 12 and Attachment C of the DPA.
Paragraph 3 of the DPA provides that, “in the event the Offices find, in their sole discretion, that there exists a change in circumstances sufficient to eliminate the need for the reporting requirement in Attachment D, and that the other provisions of this Agreement have been satisfied, the Agreement may be terminated early.”
Based on the information known to the Government, ABB has fully met its cooperation and disclosure obligations under paragraphs 5 and 6 the DPA, including full cooperation with the Government, implementation of a compliance program and procedures that meet the requirements of Attachment C to the DPA, and satisfaction of the terms of the provisions regarding enhanced corporate compliance reporting pursuant to Attachment D to the DPA. Throughout the term of the DPA, ABB’s compliance with its obligations under the agreement has been proactive and thorough, and the Company has devoted substantial resources to its compliance program. ABB has conducted multiple comprehensive assessments of risk throughout the Company, enhanced risk surveillance, delivered enhanced training worldwide, conducted risk informed integrity testing, and measured the effectiveness of enhancements. In addition, ABB has made timely payments as required by the DPA, totaling a criminal monetary penalty of $315,000,000.
Because ABB has fully complied with all of its obligations under the DPA, the Government has determined that early dismissal of the Information with prejudice is appropriate. See DPA ¶¶ 3, 13–14.”
On June 20th, Judge Michael Nachmanoff (ED Va) granted the motion.
