As highlighted in this prior post, in February 2018 Albemarle Corp. (a North Carolina based chemical company) disclosed Foreign Corrupt Practices Act scrutiny.
Specifically the company disclosed:
“Following receipt of information regarding potential improper payments being made by third party sales representatives of our Refining Solutions business, we promptly retained outside counsel and forensic accountants to investigate potential violations of the Company’s Code of Conduct, the Foreign Corrupt Practices Act (“FCPA”), and other potentially applicable laws. Based on this internal investigation, we have voluntarily self-reported potential issues relating to the use of third party sales representatives in our Refining Solutions business to the U.S. Department of Justice (“DOJ”) and Securities and Exchange Commission (“SEC”), and intend to cooperate with the DOJ and SEC in their review of these matters. In connection with our internal investigation, we have implemented, and are continuing to implement, appropriate remedial measures. At this time, we are unable to predict the duration, scope, result or related costs associated with any investigations by the DOJ or SEC. We also are unable to predict what, if any, action may be taken by the DOJ or SEC or what penalties or remedial actions they may seek.”
Fast forward and approaching 5.5 years later, Albemarle is still under FCPA scrutiny.
However, the company recently disclosed:
“As previously disclosed, we have been engaged in discussions with respect to the foregoing matters, and we have now reached agreements in principle to resolve these matters with the DOJ and SEC. […] In connection with this anticipated resolution, which relates to conduct prior to 2018, we would enter into a Non-Prosecution Agreement with the DOJ and an administrative resolution with the SEC, and pay a total of approximately $218.5 million in aggregate fines, disgorgement, and prejudgment interest to the DOJ and SEC. The anticipated resolution does not include a compliance monitorship, and we would agree to certain ongoing compliance reporting obligations. As we have agreements in principle only, there can be no assurance that we will enter into definitive agreements with respect to such resolution or as to the potential timing, final terms, or collateral consequences of any such resolution.”
