From Ignoring Red Flags To Paying Millions: Chemicals Company Albemarle Settles Bribery Probe

Albemarle Corporation ALB, a Charlotte-based global specialty chemicals company, has come to terms with the U.S. Securities and Exchange Commission (SEC) over accusations of violating anti-bribery regulations.

The company has agreed to pay more than $103.6 million to settle the SEC's charges. 

In a concerning revelation, the SEC pointed out that despite glaring warning signs, Albemarle had a history of liaising with agents who were involved in bribery activities.

This controversial involvement extended from 2009 to 2017 and was centered on acquiring sales from oil refineries across countries like Vietnam, India, and Indonesia.

Furthermore, the SEC Order finds that Albemarle violated recordkeeping requirements and failed to devise and maintain a sufficient system of internal accounting controls to provide reasonable assurances that payments made to agents in Vietnam, Indonesia, India, China, and the United Arab Emirates were for legitimate services.

In an acceptance of the SEC's findings, Albemarle acknowledged its violation of the anti-bribery, recordkeeping, and internal accounting controls provisions.

Apart from the hefty financial ramifications, the company has also committed to ensuring no future breaches of these provisions. The breakdown of the settlement comprises $81.8 million in disgorgement and an additional $21.7 million in prejudgment interest.

In a parallel development, the U.S. Department of Justice (DOJ) disclosed a non-prosecution agreement with Albemarle. The terms of this agreement dictate that the company will pay a criminal fine of $99 million and forfeit close to $98 million. Notably, $81.8 million of this forfeiture amount will be settled through the company's disgorgement payment as per the SEC Order.

Price Action: ALB shares are trading higher by 2.13% at $176.07 on the last check Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.