• Foreign Corrupt Practices Act Alert: Goodyear Agrees to Pay More Than $16 Million to Settle SEC Charges of FCPA Violations Relating to Bribes Paid in Kenya and Angola
  • April 1, 2015 | Authors: Nicolas Bourtin; Justin J. DeCamp; Theodore Edelman; Robert J. Giuffra; John L. Hardiman
  • Law Firm: Sullivan & Cromwell LLP - New York Office
  • The U.S. Securities & Exchange Commission (SEC) announced today that Goodyear Tire & Rubber Company (Goodyear) has agreed to pay more than $16 million in disgorgement and prejudgment interest to settle charges that the company violated the books and records and internal control provisions of the Foreign Corrupt Practices Act (FCPA). According to the SEC, Goodyear subsidiaries in Kenya and Angola unlawfully paid more than $3.2 million to obtain sales of tires between 2007 and 2011, resulting in profits of $14,122,525. The SEC alleged that Goodyear failed to detect these payments as a result of the company’s failure to institute adequate FCPA compliance controls at the two subsidiaries and Goodyear’s failure to conduct adequate due diligence at the time of the acquisition of its interest in one of the subsidiaries.