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Diebold pays out $48M in Russian FCPA settlement

August 7, 2013

In line with its stated intent to resolve legal issues distracting management from the company's turnaround effort, Diebold Inc. has come to an agreement in principle with U.S. authorities to settle alleged violations of the Foreign Corrupt Practices Act of 1977.

According to a Wall Street Journal report published this afternoon, Diebold has tentatively agreed to pay $48 million in fines stemming from bribes paid by the company's Russian subsidiary. The company also will appoint an independent compliance monitor for a term of at least 18 months.

In its Q4 2012 earnings conference, Diebold said it had set aside $18 million pre-tax to increase its accrual in the FCPA case.

Diebold informed federal authorities in July 2010 of the possible FCPA violations. In November, the company fired five members of its Russian leadership team as the result of an internal probe.

Last August, NCR Corp. also came under scrutiny over possible FCPA violations following a whistleblower's allegations of bribes paid by NCR management in China and the Middle East. That investigation is ongoing.

Read more about regulatory issues.

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