Alarming lessons from Siemens

Author: | Published: 1 Jul 2009

In a long anticipated settlement that was first announced on December 15 2008, German industrial company Siemens and three of its subsidiaries, in Argentina, Bangladesh and Venezuela, agreed to pay a combined total of $800 million to the US Department of Justice and Securities and Exchange Commission (SEC) to settle far-reaching violations of the Foreign Corrupt Practices Act (FCPA) that came to light following a November 2006 dawn raid on various Siemens employees and offices by German law enforcement authorities.

In a cooperative stance that is the first of its kind between the US and Germany, on the same day as the US settlements were announced Siemens revealed that it had agreed to pay an additional €395 million ($528 million) in penalties in Germany to resolve similar allegations. Previously, Siemens had paid €201 million in Germany in partial settlement for similar charges.

The settlement with the Justice Department...