Plantronics, a U.S. communications equipment company, announced Wednesday that Polycom entered into a settlement with the Securities and Exchange Commission for violations of the Foreign Corrupt Practices Act that Polycom previously self-reported.
Polycom neither admitted nor denied the SEC’s allegations. As part of resolving these matters, a payment of $36 million will come from an escrow secured by Plantronics as part of its acquisition of Polycom.
After discovering evidence of possible improper behavior on the part of former employees at its subsidiary in China, Polycom voluntarily reported the matter to the U.S. government, conducted a thorough investigation, and fully cooperated with U.S. authorities. The conduct at issue was limited to Polycom China and occurred prior to Plantronics’ acquisition of Polycom in July 2018, and prior to Polycom going private in 2016. All the individuals involved had left Polycom by the time Plantronics acquired it.
“We are very pleased that the investigation into some of Polycom’s foreign operations has concluded,” Plantronics CEO Joe Burton said in a statement. “Plantronics has been, and remains, committed to operating with ethical and financial integrity, and we look forward to the future with Polycom.”
The U.S. Department of Justice also made public a letter of declination closing its investigation into Polycom, citing, among other things, Polycom’s voluntary disclosure and full cooperation.