Stericycle, a medical waste disposal company, disclosed in an earnings call Thursday it expects to pay $80.7 million in principle agreements with the Securities and Exchange Commission (SEC) and Department of Justice for violations of the Foreign Corrupt Practices Act (FCPA) concerning its operations in Latin America.
Stericycle disclosed in an August 2017 filing it received a subpoena from the SEC in June 2017 “requesting documents and information relating to the company’s compliance with the FCPA or other foreign or domestic corruption laws with respect to certain of the company’s operations in Latin America.” The Department of Justice also notified the company at that time it was investigating the matter in parallel with the SEC, the company said.
An internal investigation of these matters, “under the oversight of the audit committee of the board of directors and with the assistance of outside counsel … found evidence of improper conduct,” the company added.
In its latest annual report, Stericycle provided more details about the settlement discussions. Under its agreement in principle with the Department of Justice, Stericycle would pay $52.5 million in criminal fines and would enter a three-year deferred prosecution agreement.
It also would enter an administrative resolution with the SEC for alleged violations of the anti-bribery, books and records, and internal controls provisions of the FCPA. Stericycle would pay $22.2 million in disgorgement and prejudgment interest of $6 million.
Under both agreements, Stericycle “would engage an independent compliance monitor for two years and undertake compliance with self-reporting obligations for an additional year,” the company stated.
Stericycle said it also was in settlement discussions with Brazilian authorities regarding these matters that could result in certain monetary portions of the Department of Justice and SEC agreements being offset.
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