Daimler bribes: a blown chance to clean up its act
Business Law
At a 1999 meeting in Germany, board members at Daimler, one of the world's largest vehicle manufacturers, took a step that could have saved the company the trouble it will face in a U.S. courtroom on Thursday.
Before a federal judge, Justice Department prosecutors will lay out the dirty laundry of the company best known for its elegant Mercedes-Benz autos: a pattern of bribery that for many decades has helped fuel the company's sales and illicitly added millions of dollars to its profits. As a result, the company has agreed to pay $185 million in fines.
According to court papers filed March 24, the company's board 11 years ago adopted an integrity code with anti-bribery provisions. The problem is, Daimler failed to enforce it; many Daimler executives actively resisted it, and improper payments continued until 2008.
The court papers provide a case study of how executives at one of the world's blue chip companies responded when governments said "no" to bribery.
Of course, Daimler, through its subsidiaries, is hardly the first corporate giant to be caught paying off foreign officials to get contracts.
In December 2008, for example, engineering company Siemens AG agreed to pay more than $1 billion in fines in Germany and the U.S. after being accused of bribing officials with suitcases stuffed with money.
Ten years earlier, Germany ratified an international anti-bribery agreement; an implementing law took effect in early 1999.
Related listings
-
Philly news lenders appeal auction bid rules
Business Law 03/31/2010Creditors trying to win control of Philadelphia's two major newspapers have asked a U.S. appeals court to reconsider a key ruling involving the upcoming bankruptcy auction.Secured creditors are owed about $300 million by owners of The Philadelphia In...
-
US judge orders firms to defend municipals suit
Business Law 03/26/2010About a dozen banks and financial firms must defend allegations of bid rigging, limited competition and price fixing in the municipal derivatives market, a U.S. judge ruled on Thursday.U.S. District Judge Victor Morrero's written order said the defen...
-
Court lifts ban on media ownership restrictions
Business Law 03/24/2010A federal court has at least temporarily lifted government rules that blocked media companies from owning a newspaper and a broadcast TV station in the same market.The decision Tuesday by the U.S. Court of Appeals for the Third Circuit lifts the Fede...
New York Commercial Litigation Law Firm - Woods Lonergan PLLC
Founded in 1993 by Managing Partner James F. Woods, Woods Lonergan PLLC has built a strong reputation as a resourceful and industrious firm that provides clients with clear, concise, and straightforward answers to their most challenging legal issues. Partner Lawrence R. Lonergan, who joined the firm in 2008, has been a friend and colleague to Mr. Woods for over 40 years and shares the same business philosophy. Woods Lonergan PLLC’s collective experience and expertise enables the firm to expeditiously and effectively analyze the increasing challenges clients face in an evolving business and legal world, in many instances, avoiding unnecessary time and expense to our clients. Our mission is simple: provide cutting-edge expertise and sound advice in select areas of the law for corporate and business clients. We thrive on providing each client with personalized attention, forceful representation, and a collaborative team effort that embraces collective knowledge.