Akamai Technologies, Inc. said in its annual report Monday the internal investigation it started a year ago into sales practices in a country outside the U.S. is ongoing and includes a review of FCPA compliance.
The company self disclosed the investigation to the DOJ and SEC in February 2015 and made a public disclosure about it in a quarterly SEC filing a month later.
Akamai first appeared on the FCPA Blog’s Corporate Investigations List in April 2015.
The company said Monday the internal investigation still relates to sales practices in one country outside the U.S. It didn’t name the country but said sales there “represented less than 1% of [Akamai’s] revenue in each of the years ended December 31, 2015, 2014 and 2013.”
It reported $2.2 billion in revenue last year.
Akamai is a content delivery network and cloud services provider headquartered in Cambridge, Massachusetts.
It trades on Nasdaq under the symbol AKAM.
It said the internal investigation includes “a review of compliance with the requirements of the U.S. Foreign Corrupt Practices Act and other applicable laws and regulations by employees in that market.”
Akamai said Monday it cannot predict the outcome of the investigation and hasn’t made any provision for it in its consolidated financial statements.
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Here’s the FCPA disclosure from the Form 10-K Akamai Technologies Inc. filed with the SEC on February 29, 2016:
The Company is conducting an internal investigation, with the assistance of outside counsel, relating to sales practices in a country outside the U.S. that represented less than 1% of the Company’s revenue in each of the years ended December 31, 2015, 2014 and 2013.
The internal investigation includes a review of compliance with the requirements of the U.S. Foreign Corrupt Practices Act and other applicable laws and regulations by employees in that market.
In February 2015, the Company voluntarily contacted the U.S. Securities and Exchange Commission and Department of Justice to advise both agencies of this internal investigation. The Company is cooperating with those agencies.
As of the filing of these financial statements, the Company cannot predict the outcome of this matter. No provision with respect to this matter has been made in the Company’s consolidated financial statements. . . .
If violations are found, we may be subject to penalties, which could include substantial fines.
Richard L. Cassin is the publisher and editor of the FCPA Blog. He can be contacted here.