FLIR Systems Announces Resolution With Securities and Exchange Commission

Date Announced: 08 Apr 2015

Agreement Settles Investigation Into Past FCPA Violations by Two Former Employees.

WILSONVILLE, OR--(Marketwired - Apr 8, 2015) - FLIR Systems, Inc. (NASDAQ: FLIR) today announced an agreement with the Securities and Exchange Commission (SEC) resolving previously disclosed violations of the Foreign Corrupt Practices Act (FCPA) committed by two former FLIR employees dating back to 2008.

FLIR discovered the FCPA violations related to approximately $40,000 in excessive travel related to factory acceptance tests and miscellaneous gifts valued at approximately $7,000. FLIR subsequently self-reported the actions to the SEC and the U.S. Department of Justice (DOJ) and then terminated the involved employees, who knowingly violated and actively circumvented the Company's policies and financial controls. As part of its act of self-reporting, FLIR conducted a thorough investigation of its international business activities with the assistance of independent legal specialists. The settlement fully resolves all outstanding issues related to these investigations.

In announcing the settlement, the SEC recognized FLIR for self-reporting the violations.

"FLIR takes compliance very seriously and has policies and procedures in place to prevent such conduct," said FLIR President and CEO, Andy Teich. "We self-reported the employees' activities to the relevant authorities upon discovering them and cooperated with the government's investigation. We have taken action to bolster our training, controls, and policies. The actions of the two former employees involved do not reflect the values of FLIR or the high standards to which we hold ourselves accountable. I am very pleased that we have fully resolved this matter and put it behind us."

The DOJ declined to pursue any case against FLIR. Under the terms of the agreed order with the SEC, pursuant to which FLIR neither admitted nor denied the findings in the order, FLIR will pay $7,534,000 in profit disgorgement, $970,584 in prejudgment interest, and a civil penalty of $1,000,000. The Company had previously reserved for this settlement in the fourth quarter of 2014. The Company has also agreed to periodically update the SEC on its FCPA compliance, training, and monitoring activities over the next two years.

Source: FLIR Systems

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