General Cable Corporation (NASDAQ:BGC) Files An 8-K Other EventsItem 8.01 Other Events.
General Cable Corporation (“General Cable” or the “Company”) announced on December 29, 2016, that it has entered into agreements with the U.S. Securities & Exchange Commission (“SEC”) and the U.S. Department of Justice (“DOJ”) that bring to a conclusion those agencies’ respective investigations relating to the U.S. Foreign Corrupt Practices Act (“FCPA”) and the SEC’s separate accounting investigation related to the Company’s financial restatements from 2013 and 2014. to those agreements, General Cable will pay fines, disgorgement and pre-judgment interest to the SEC and DOJ in the total amount of $82.3 million.
The Company’s resolution with the SEC encompasses both the FCPA issues and the separate accounting and disclosure issues that were the subject of the Company’s prior restatements. General Cable will disgorge profits of approximately $51.2 million and pay pre-judgment interest of approximately $4.1 million in connection with the FCPA matter, and pay a civil penalty in connection with the restatement-related matters of $6.5 million.
As part of the DOJ resolution, General Cable will pay a penalty of approximately $20.5 million. The Company has entered into a non-prosecution agreement with the DOJ which will be in effect for three years. No criminal charges will be brought against General Cable provided it complies with its obligations under the agreement. In light of the significant compliance enhancements made by the Company to date, neither the SEC nor the DOJ is requiring an independent compliance monitor. The Company has instead agreed to annual self-reporting for a period of three years.
As of the third quarter of 2016, General Cable had accrued $33 million for the FCPA-related investigations. As a result of the resolutions with the SEC and the DOJ, General Cable will record a charge of approximately $49.3 million in the fourth quarter of 2016. Taking this charge into account, General Cable will have recognized all costs associated with the resolution of this matter with the SEC and the DOJ.
Both the SEC and the DOJ recognized and credited General Cable for its extensive and transparent cooperation throughout the investigation, and for significantly enhancing its compliance program.
The complete settlement agreements, including the Company’s obligations under each, can be accessed at the SEC and the DOJ websites at www.sec.gov and www.justice.gov, respectively.