Overview

General Electric (GE) announced on 27 July 2010 that it had reached a $23.5 million settlement with the SEC regarding alleged violations of the FCPA in securing contracts under the UN Oil for Food programme. The charges brought by the SEC related to two European GE subsidiaries, in addition to subsidiaries of Amersham plc, a UK-based company, and Ionics Inc., companies later acquired by GE.

The settlement involves a $1 million penalty and the disgorgement of profits plus interest which the subsidiaries are estimated to have earned on the transactions. While much larger settlements have been agreed in relation to FCPA breaches, the case draws attention to the liability assumed by corporations for the acts of their subsidiaries and agents.

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