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 | Investigations Dataset

Stanford Foreign Corrupt Practices Act Clearinghouse a Collaboration with Sullivan & Cromwell LLP

Investigations Dataset

 
Investigation into Lummus Global's Activities · ABB Ltd.

Information & Summary

Investigation into Lummus Global's Activities

Related FCPA Matter:   ABB's Involvement in Mexico and in the United Nations Oil-for-Food Program between 1997 and 2004 Information

Information & Summary

Investigation Name:    Investigation into Lummus Global's Activities

Trend:    None

Type of investigation:    Internal, SEC, DOJ

Other Agencies Investigating/Assisting with SEC/DOJ Investigation:    Unknown

Whistleblower:    Unknown

Summary

ABB Ltd is a Swedish–Swiss multinational corporation headquartered in Zürich, Switzerland and is organized under the laws of Switzerland. It operates mainly in robotics, power, heavy electrical equipment, and automation technology areas.

In 2007, ABB Ltd. disclosed to both the SEC and the DOJ that certain “suspect payments” had been made in a number of countries by employees of the Lummus Global business ("Lummus"). These payments were discovered by ABB’s internal audit and compliance programs. ABB cooperated fully with the authorities, while continuing its internal investigations and compliance reviews.

In November 2007, ABB sold Lummus to Chicago Bridge & Iron, although ABB retained liabilities for potential fines and penalties regarding these suspect payments.

In September 2010, ABB reached settlements with the DOJ and the SEC regarding their investigations into the Lummus payments as well as certain suspect payments in the company's network management unit in the United States, suspect payments made by other ABB subsidiaries in a number of countries in the Middle East, Asia, South America and Europe (including to an employee of an Italian power generation company), as well as suspect payments involving certain ABB subsidiaries in the United Nations Oil-for-Food Program. In connection with these settlements, ABB agreed to make payments to the DOJ and SEC totaling $58 million. One subsidiary of ABB pled guilty to one count of conspiracy to violate the anti-bribery provisions of the U.S. Foreign Corrupt Practices Act and one count of violating those provisions. ABB also entered into a deferred prosecution agreement and settled civil charges brought by the SEC.

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