After Ingersoll-Rand PLC disclosed certain matters to the SEC that could have violated the Foreign Corrupt Practices Act an investigation on behalf of investors of Ingersoll-Rand PLC (NYSE:IR) over possible breaches of fiduciary duties by certain officers and directors at Ingersoll-Ran in connection with potential foreign bribery was announced.
The investigation by a law firm on behalf of current long term investors in Ingersoll-Rand PLC (NYSE:IR) concerns whether certain officer and directors at Ingersoll-Rand PLC breached their fiduciary duties and can be held liable for possibly violating the U.S. Foreign Corrupt Practices Act (FCPA), which prohibits companies from making improper payments to foreign officials for the purpose of obtaining or keeping business.
Ingersoll-Rand PLC recently disclosed that it reported to the Justice Department (DOJ) and U.S. Securities and Exchange Commission (SEC) certain matters which raise potential issues under FCPA and other applicable anti-corruption laws, including matters which were reported during the past quarter.
According to the DOJ the Foreign Corrupt Practices Act was enacted for the purpose of making it unlawful for certain classes of persons and entities to make payments to foreign government officials to assist in obtaining or retaining business. Specifically, the anti-bribery provisions of the FCPA prohibit the willful use of the mails or any means of instrumentality of interstate commerce corruptly in furtherance of any offer, payment, promise to payto a foreign official to influence the foreign official in his or her official capacity to secure any improper advantage in order to assist in obtaining or retaining business for or with, or directing business to, any person.
Ingersoll-Rand PLC said it conducted, and continues to conduct, investigations and have had preliminary discussions with respect to these matters with the SEC and DOJ, which are ongoing. Ingersoll-Rand PLC said that the SEC indicated that it will seek additional information and documents regarding these matters.
Additionally, Ingersoll-Rand PLC previously reported that the SEC issued an Order directing that a number of public companies, including Ingersoll-Rand PLC , provide information relating to their participation in transactions under the United Nations Oil for Food Program. Ingersoll-Rand PLC provided the SEC with information responsive to the Order and provided additional information requested by the SEC. During a March 27, 2007 meeting with the SEC, at which a representative of the DOJ was also present, Ingersoll-Rand PLC began discussions concerning the resolution of this matter with both the SEC and DOJ and on October 31, 2007, Ingersoll-Rand PLC announced it had reached settlements with the SEC and DOJ relating to this matter. Under the terms of the settlements, Ingersoll-Rand PLC agreed to pay a total of $6.7 million in penalties, interest and disgorgement of profits.
Shares of Ingersoll-Rand PLC traded recently at $39.55, close to its 52weekHigh of $40.65 per share.
Ingersoll-Rand PLCs 12 month total revenue went from $8.003billion in 2006 to $13.195billion in 2009. Its Net Income on the other hand declined from $1,032million to $451million. Ingersoll-Rand PLC reported in the first three quarters in 2010 almost already as much total revenue as for the whole year 2009, Ingersoll-Rand reported quarterly total revenue of $2.935billion, $6.637billion, and $3.37billion. For 2010 Ingersoll-Rand PLC reported in the first quarter 2010 a Net Income of only $1.50million and a combined total Net Income for the first three quarters of $431.6million. Ingersoll-Rand PLC shares traded as little as under $12 during 2009 and as high as $55.55 during 2007.