Stericycle, a medical-waste disposal company, disclosed in a recent securities filing that it is being investigated by the Securities and Exchange Commission and the Department of Justice for potential violations of the Foreign Corrupt Practices Act concerning the company’s operations in Latin America.
In an Aug. 9 Form 10-Q, Stericycle said the SEC issued the subpoena on June 12, 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. In addition, the Justice Department has notified the company that it is investigating this matter in parallel with the SEC, the company stated.
“The company is also conducting 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, and this investigation has found evidence of improper conduct,” the company stated.
The company added, “We have not accrued any amounts in respect of this matter, as we cannot estimate any reasonably possible loss or any range of reasonably possible losses that we may incur. We are unable to make such an estimate because, based on what we know now, in our judgment, the factual and legal issues presented in this matter are sufficiently unique that we are unable to identify other circumstances sufficiently comparable to provide guidance in making estimates.”