For Avon, $135M FCPA Settlement Is Just a Start
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While Avon Products Inc. works to resolve its long-running Foreign Corrupt Practices Act case, its proposed settlement is part of a recent trend in overseas bribery cases.
Avon discovered and started investigating possible FCPA violations in China in 2008. It self-reported to the U.S. Securities and Exchange Commission and to the U.S. Department of Justice. Still, the settlement talks did not go as the cosmetics company had hoped.
While it offered to settle for $12 million, the total bill will be closer to $135 million, according to its quarterly filing with the SEC in May. The plan also calls for Avon to enter a three-year deferred prosecution agreement, to hire a corporate monitor and to have a subsidiary in China plead guilty to “books and records” violations.
“Avon fits in with trends we’re seeing, in that how the case is being resolved is consistent with past cases,” James Tillen, vice chairman of Miller & Chevalier’s international practice in Washington, D.C., told CorpCounsel.com Friday. Tillen discussed the trends in the context of his firm’s summer review of FCPA cases.
Read more: www.corpcounsel.com/id=1202664648488/For-Avon-36135M-FCPA-Settlement-Is-Just-a-Start#ixzz38lIKasEH
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