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Diebold discloses $48 million ‘agreed in principle’ settlement

Diebold Incorporated said in an SEC filing Tuesday that it will pay $48 million to the DOJ and SEC to resolve FCPA offenses.

The Ohio-based ATM maker said it has ‘agreed in principle with the DOJ and the SEC to the terms of a proposed settlement of their inquiries, which terms remain subject to final approval by all parties.’

Three years ago, Diebold disclosed an investigation into payments by a Russian subsidiary. The company also terminated the management of the subsidiary in late 2010.

Settlement terms include payment of about $48 million, Diebold said, ‘in disgorgement, penalties and prejudgment interest, and the appointment of an independent compliance monitor for a minimum period of 18 months.’

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Here’s the full FCPA disclosure from Diebold Incorporated’s Form 8-K filed with the SEC on August 6, 2013:

Diebold continues to monitor its compliance with the FCPA. It also is continuing its cooperation with the U.S. Department of Justice (DOJ) and Securities and Exchange Commission (SEC) in their ongoing inquiries, and is making continued progress toward a timely resolution of this matter. The company has agreed in principle with the DOJ and the SEC to the terms of a proposed settlement of their inquiries, which terms remain subject to final approval by all parties. These proposed settlement terms include combined payments to the U.S. government of approximately $48.0 million in disgorgement, penalties and prejudgment interest, and the appointment of an independent compliance monitor for a minimum period of 18 months. Accordingly, during the second quarter 2013, Diebold accrued an additional $28.0 million in connection with the potential settlement. The company excludes costs related to this review from its non-GAAP operating results as it provides a better overall understanding of the company’s historical financial performance and future prospects.

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Richard L. Cassin is the Publisher and Editor of the FCPA Blog. He can be contacted here.

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