A PYMNTS Company

Brazil: Embraer reaches $205.5 million graft settlement with US

By  |  October 24, 2016

Brazilian planemaker Embraer on Monday reached an agreement with US and Brazilian authorities to settle a six-year corruption investigation, paying $205.5 million to turn the page on signs of graft in four foreign contracts.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    Embraer said an internal probe, launched in 2010 after receiving a subpoena in the United States, found evidence of wrongdoing in deals with Saudi Arabia, India, Mozambique and the Dominican Republic in the five years through 2011.

    The fine due to US and Brazilian authorities is in line with a $200 million provision Embraer made in July.

    The planemaker’s shares slipped 0.5 percent in trading in Sao Paulo after news of the accord, which offers closure in a case that risked prosecution of the company under the U.S. Foreign Corrupt Practices Act.

    The company said it is not party to a parallel Brazilian criminal investigation of certain individuals.

    Embraer, the world’s third-largest maker of commercial jets, has replaced much of its senior management in recent years, reinforced compliance efforts and curtailed use of third-party sales representatives, who drew suspicion in deals under review.

    Full Content: Reuters

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.