Stericycle to pay $81 million, hire monitor, to resolve bribery probes as the company discloses deal to resolve investigations into compliance with US Foreign Corrupt Practices Act
Under an agreement in principle with US authorities, Stericycle would pay a $52.5 million criminal penalty, $22.2 million representing illicit proceeds and $6 million in interest.
The company said it would pay nearly $81 million in total to the Justice Department and the Securities and Exchange Commission to resolve the Foreign Corrupt Practices Act probes. The company, which specialises in collecting and disposing of substances including medical waste and sharps, also said it would hire an independent monitor for two years.
The investigations into Stericycle date to at least June 2017, when the company disclosed to investors it had received a subpoena from the SEC related to its compliance with the FCPA at its operations in Latin America. The FCPA prohibits companies with U.S. ties from paying bribes to foreign officials to gain a business advantage.
As noted in Wall Street Journal¶, Stericycle said it would enter into a deal under which the Justice Department would defer for three years charges that the company conspired to violate the FCPA. The company would also enter an administrative settlement with the SEC. Prosecutors can later dismiss the charges if the company adheres to the agreement.
The agreement is still subject to final approval by the company’s board, as well as the Justice Department and the SEC, Stericycle said. The company on Thursday said it was also discussing a potential settlement of investigations by Brazilian authorities, without giving details.
¶ not my usual reading, but nonetheless an interesting report on the apparent behaviour and woes of Stericycle