Foodservice packaging company Pactiv Evergreen said it has received indication from the Securities and Exchange Commission (SEC) it will not face enforcement following an internal investigation launched last year into potential violations of the Foreign Corrupt Practices Act (FCPA).
Pactiv Evergreen disclosed the update Aug. 5 after revealing in May the Department of Justice decided to close its investigation into the matter after reviewing investigation findings presented by the company in February. The SEC has similarly “indicated its intention to close this matter without any action against the Company, and we intend to fully cooperate with the SEC, with the assistance of legal counsel, to conclude this matter,” Pactiv Evergreen stated.
In August 2020, Pactiv Evergreen identified practices in its Evergreen Packaging Shanghai business—part of its beverage merchandising segment—that might have violated the FCPA. In September 2020, the company voluntarily self-disclosed to the Justice Department and the SEC the relevant items and its investigation.
The practices in question included “the occasional giving of gift cards representing relatively minor monetary values to government regulators and employees of state-owned enterprise customers in the People’s Republic of China (PRC) over the course of several years,” the company previously stated. Pactiv Evergreen described the amounts on the gift cards as “immaterial” and said it has discontinued the giving of gift cards as part of its remediation of the issue.