AB Volvo reaches settlements with DOJ and SEC regarding Oil-for-Food activities
AB Volvo today entered into a consent agreement with the U.S. Securities and Exchange Commission (SEC) and a deferred prosecution agreement with the U.S. Department of Justice (DOJ) resolving issues related to the activities of two of its subsidiaries in Iraq under the Oil-for-Food Program.
The settlements include USD 19.6 million in fines, disgorgement of past profits on the contracts under the Oil-for-Food Program and interest. The effect of the financial settlements on the operating income for the first quarter is approximately USD 10 million. The agreements with the DOJ and SEC also provide for improved internal compliance programs that AB Volvo and its subsidiaries will implement.
“The incident is, of course, regrettable, but we do note with some satisfaction that the authorities spoke favorably of the cooperation by Volvo as well as Volvo’s own investigation and measures”, says Volvo CEO Leif Johansson. “It is important that we all now learn from what occurred.”
March 20, 2008
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