Tyco International, Ltd. To Pay $26 Million to Settle Foreign Corrupt Practices Act Violations

SEC v. Tyco, International Ltd., Case No. 1:12-cv-01583 (D.D.C.).  On September 24, 2012, the SEC announced the filing of a settled FCPA case against Tyco.  In 2006, the SEC filed a settled FCPA action against Tyco in which the company agreed to injunctive relief, $1 in disgorgement, and a $50 million civil penalty.  Around the time of the settlement, Tyco agreed to review its FCPA compliance.  The review revealed that there were FCPA violations that occurred after the 2006 injunction.  Among the misconduct uncovered, Tyco subsidiaries were involved in schemes to make unlawful payments by sales agents to government officials in Turkey.  Tyco voluntarily revealed the new FCPA violations to the SEC and undertook various remedial measures including, among other things, a review of more than 450 entities in dozens of different countries, ethics and compliance training for thousands of managers, and the firing of nearly 100 employees.

Tyco agreed to a permanent injunction against future violations of Sections 13(b)(2)(A), 13(b)(2)(B), and 30A(a) of the Exchange Act and disgorgement of $10,564,992, plus prejudgment interest of $2,566,517.   

Separately, Tyco settled parallel criminal charges brought by the Department of Justice by agreeing to pay penalties in excess of $13 million.

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