In late 2014, Alstom and related entities resolved a $772 million DOJ FCPA enforcement action.
The enforcement action concerned conduct in several countries including Saudi Arabia in which the DOJ alleged improper conduct (generally between 1999 and 2002) in connection with Alstom bids for power projects with Saudi Electric Company (“SEC”), Saudi Arabia’s state-owned and state-controlled electricity company, and its predecessor entities.
In 2015, General Electric acquired Alstom’s power and grid businesses.
In 2024, GE Vernova spun-off from GE and began trading as an independent company on the New York Stock Exchange.
Recently, GE Vernova made an interesting disclosure regarding the conduct from 20 plus years ago.
This quarterly filing states:
“In June 2024, we executed a settlement agreement with the Government of the Kingdom of Saudi Arabia, represented by The Ministry of Energy (MOE) in connection with certain Alstom steam power construction projects with Saudi Electric Company (SE) won between 1998 and 2008. In November 2015, prior to its acquisition by GE, Alstom had paid a fine and pled guilty to charges brought by the U.S. Department of Justice under the U.S. Foreign Corrupt Practices Act, including in relation to conduct related to two of these SE steam power projects. In December 2015, following the acquisition of Alstom by GE, SE contacted GE seeking recompense for alleged reputational damage and in December 2021, the Saudi Arabia National Anti-Corruption Commission became involved and initiated an investigation. The settlement of approximately $267 million consists of $141 million in cash payments to the MOE and the remainder as a credit note to SE, and releases GE Vernova, GE and their respective affiliates from civil and criminal liabilities related to this matter after the settlement obligations are met. Approximately $62 million of the cash settlement was paid in the second quarter and the remainder will be payable through September 2026.”
