Bribe of Frankenstein

21 May 2013 By Reynolds Holding

To hear some law firms tell it, the U.S. Foreign Corrupt Practices Act is a Freddy Krueger-like nightmare for multinational companies. But despite costly probes of Wal-Mart and others, cases are rare and often dubious. Warnings to the contrary are just campfire ghost tales.

This content is for Subscribers only

Context News

Wal-Mart said on May 16 that it spent $73 million on expenses related to the U.S. Foreign Corrupt Practices Act during the first quarter of 2013 rather than the $40 million to $45 million it had budgeted. The retailer in 2011 began investigating allegations that it had violated the law and last year spent $157 million on legal fees and other expenses related to the probe. In April 2012, the New York Times reported that management at Wal-Mart de Mexico orchestrated bribes of $24 million to help it grow quickly and the U.S. parent company’s top executives tried to cover up the payments.
On April 30, Avon Products reported spending $7 million during the first quarter of 2013 on legal fees and other costs connected with its FCPA investigation, less than a third of the $23 million it spent during the fourth quarter. The company shelled out $281 million between 2010 and 2012 on legal costs related to the probe involving possible bribes paid by company officials in China, Brazil, Mexico, Argentina, India and Japan.

Context News

Email a friend

Please complete the form below.

Required fields *