Sensata Technologies Holding N.V. Under Investor Investigation Over Possible Foreign Bribery
After Sensata Technologies Holding N.V. self-disclosed possible Foreign Bribery Violations an investigation on behalf of investors of Sensata Technologies Holding N.V. (NYSE:ST) over possible breaches of fiduciary duties by certain officers and directors was announced.
The investigation by a law firm on behalf of current long term investors in Sensata Technologies Holding N.V. (NYSE:ST) concerns whether certain officer and directors of Sensata Technologies Holding N.V. breached their fiduciary duties and are 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.
Sensata Technologies Holding NV announced on Friday that its audit committee had conducted an investigation into whether the company violated foreign bribery laws in connection with a business deal in China. Sensata Technologies Holding said it was in the process of reporting possible FCPA violations and the initial findings of the probe to the U.S. Securities and Exchange Commission and the U.S. Justice Department.
According to the Justice Department “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 pay…to 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.”
Netherlands based Sensata Technologies Holding N.V. is a global industrial technology company engaged in the development, manufacture and sale of sensors and controls. Sensata Technologies Holding N.V. reported in 2006 $1.174billion Total 12 months Revenue, in 2007 $1.403billion, in 2008 $1.422billion, and in 2009 $1.134billion. For the first two quarters in 2010 Sensata Technologies Holding N.V. announced $391.81million, respectively $383.29million in Total Revenue. Shares of Sensata Technologies Holding N.V. (NYSE: ST) closed on Monday, October 25, 2010 at $22 per share.