Lucent Technologies was a provider of communications networks for telecommunications service providers; it designed and provided systems, services and software. Lucent, which was incorporated in Delaware in November 1995, was formerly part of AT&T Corporation's systems and technology unit but was spun off from AT&T in 1996. On November 30, 2006, Lucent completed a merger with Alcatel SA. The new entity, Alcatel-Lucent, is incorporated in France and has its world headquarters in Paris, France. Lucent survives as a wholly-owned subsidiary of Alcatel-Lucent. During the relevant period of time, Lucent's common stock was registered with the SEC and was listed on the New York Stock Exchange.
From at least 2000 to 2003, Lucent, through its wholly owned Chinese subsidiary Lucent China, spent over $10 million for approximately 1,000 Chinese foreign officials, who were employees of Chinese state-owned or state-controlled telecommunications enterprises, to travel to the United States and elsewhere. The Chinese government enterprises were either entities to which Lucent was seeking to sell its equipment and services or existing Lucent customers.
On December 21, 2007, the SEC filed a two count Complaint in the District of Columbia against Lucent alleging violations of the Books & Records and Internal Controls provisions of the FCPA. On the same date, Lucent entered into a Consent Agreement with the SEC, under which the company agreed to entry of final judgment on the charges without admitting or denying the allegations. On January 5, 2008, the court entered final judgment. The court permanently enjoined Lucent from violating the Books & Records provisions of the FCPA and ordered the company to pay a civil fine of $1.5 million.
In a related action, on November 14, 2007, the DOJ entered into a Non Prosecution Agreement with Lucent. Under the terms of the agreement, Lucent agreed to not violate the fcpa for a term of two years, pay a fine of $1 million, and implement enhanced internal controls, including an anti-corruption compliance program.
