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On April 26, popular news and technology blog DigitalOlympus.com commented on a recent Inquisitr article regarding the Department of Justice and the Securities and Exchange Commission’s decision not to prosecute Ralph Lauren Corporation –over allegations of Foreign Corrupt Practices Act violations– on the basis of the company’s voluntary and complete disclosure after conducting a thorough internal investigation.
According to the Inquisitr article, the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) decided not to charge Ralph Lauren with violations of the Foreign Corrupt Practices Act (FCPA) because “Ralph Lauren Corporation discovered the problem itself during an internal review and then reported it promptly to the federal authorities.”
Responding to the Inquisitr news story, DigitalOlympus.com lead researcher Josh Cole highlighted the Ralph Lauren Corporation (RL) case as an example the U.S. Government’s resolve to make an example of FCPA violations by severely enforcing the law while also encouraging and rewarding cooperation from companies in an effort to boost their anti-corruption policies.
“Ralph Lauren Corporation’s timely response to the findings of its own due diligence investigations is what led to this non-prosecution agreement with the Department of Justice and the Securities and Exchange Commission,” said Cole. “When they found evidence of bribery and decided to willingly disclose the malfeasance to the authorities, the company managed to avoid a larger sanction.”
Researchers at DigitalOlympus.com also consider that the investigations conducted by Ralph Lauren Corporation demonstrate how an efficient due diligence investigation and an effective compliance program can have a huge impact on a company’s stock price; after all, according to the article, Ralph Lauren share price only dipped around two percent after the news was revealed.
The Inquisitr news article concluded that, “The Company, which had already started retraining its employees to avoid similar bribery issues, seemed satisfied with the resolution.” Ralph Lauren Corporation agreed to pay $593,000 in disgorgement (plus an additional $142,000 in interest) to the Securities and Exchange Commission as well as $882,000 in penalties to the Department of Justice.
As a finance and technology research firm, DigitalOlympus.com is committed to promoting the adoption of due diligence policies and business intelligence procedures that can help companies implement an enhanced compliance program and a more efficient internal control in order to detect and prevent possible FCPA violations.
About DigitalOlympus.comDigitalolympus.com is a news blog dedicated to educating its readers on the latest technology advances. They are committed to gathering information on up and coming technologies that will enhance the lives of their readership. Digitalolympus.com is always at the forefront of technology news and events guiding its readers to accurately determine the best course of action for themselves and their businesses.