Analogic, an airport security and medical-imaging technology provider, said in a quarterly filing this week that it has proposed a $1.6 million settlement to the Securities and Exchange Commission to resolve a Foreign Corrupt Practices Act case.
As initially disclosed in its annual report for the fiscal year ended July 31, 2011, Analogic identified certain transactions involving its Danish subsidiary BK Medical, and certain of its foreign distributors, that potentially violated Danish law, the FCPA, and company policies. These included transactions in which the distributors paid BK Medical more than amounts owed, and BK Medical transferred the excess amounts, at the direction of the distributors, to third parties identified by the distributors.
Analogic said it voluntarily disclosed the matter to the Danish government, the Department of Justice. "We are uncertain whether the U.S. Department of Justice or the Danish Government will seek to impose any sanctions or penalties against us and have not engaged in settlement discussions with either of these entities," the compay said in the quarterly filing.
Analogic said it has, so far, incurred inquiry-related costs of approximately $1.6 million in connection with this matter.