Avon disgorgement lands on top ten list
Friday, December 26, 2014 at 7:22AM
Richard L. Cassin in Alcatel, Alcoa, Avon, Bio-Rad, Daimler, Disgorgement, Disgorgement Top Ten, KBR, Pfizer, Snamprogetti, Technip, Total

Image courtesy of AvonAvon's $135 million settlement with the DOJ and SEC earlier this month included a disgorgement to the SEC with interest that ranks 8th on our list of the biggest FCPA disgorgements.

Avon agreed to disgorge $52.85 million to the SEC, plus prejudgment interest of $14.5 million.

Disgorgement, according to contributing editor Marc Alain Bohn, is a remedy authorized by the Securities Exchange Act of 1934 that's "used to deprive wrong-doers of their ill-gotten gains and deter violations of federal securities law."

Disgorgement first appeared in an FCPA enforcement action in 2004 when ABB Ltd disgorged $5.9 million to resolve books and records and internal controls offenses.

Since then the SEC has used disgorgement in more than three-quarters of its FCPA-related enforcement actions.

Here are the current top ten FCPA-related corporate disgorgements. All amounts also include pre-judgment interest:

1.  Siemens $350 million in 2008

2.  KBR  $177 million in 2009

3.  Alcoa $161 million in 2014

4.  Total S.A. $153 million in 2013

5.  Snamprogetti $125 million in 2010

6.  Technip $98 million in 2010

7.  Daimler $91.4 million in 2010

8.  Avon $67.35 million in 2014

9.  Pfizer $45.2 million in 2012

10. Alcatel-Lucent $45 million in 2010

The Avon disgorgement moved Bio-Rad Laboratories' $40.7 million payment in 2014 off the list.

*     *     *

For comparison, here's our current list of the top ten FCPA enforcement actions.
________

Richard L. Cassin is the publisher and editor of the FCPA Blog. He can be contacted here.

Article originally appeared on The FCPA Blog (http://www.fcpablog.com/).
See website for complete article licensing information.