News

NCR sheds doubt on whistleblower allegations

August 16, 2012

The day after the Wall Street Journal posted an article revealing that a tipster had alleged violations of the Foreign Corrupt Practices Act at a number of NCR Corp. international offices, the company issued its own report of events.

According to a subsequent post by WSJ, NCR said in a regulatory disclosure that it had received information from an anonymous "purported whistleblower" about possible FCPA violations, as well as a possible violation of U.S. trade sanctions against Syria.

However, NCR said it questioned the accuracy of the allegations. "NCR has certain concerns about the motivation of the purported whistleblower and the accuracy of the allegations it received, some of which appear to be untrue," the company said.

Also, NCR said it had shut down operations in Syria and was taking other steps consistent with guidelines by the Office of Foreign Assets Control, including notifying the OFAC of "potential apparent violations."

NCR stock has dropped by 10 percent since the allegations were made public, the WSJ article said, as investors worried that a federal inquiry could result in steep investigation costs, potential fines and damage to the company's business in emerging markets. 

For more on this topic, visit the regulatory issues research center.