This morning Herbalife (NYSE: HLF) was charged criminally for paying bribes to Chinese officials. The action is related to criminal liability under FCPA (U.S. Foreign Corrupt Practices Act).
- Herbalife violated the books and records and internal controls provisions of the FCPA
- The company will pay $123 million as a settlement with the SEC and DOJ, and this amount has been included in current liabilities on the June 30, 2020 financial statemetns
- If the company doesn’t have any other violations for 3 years, this deferred charge will be dismissed
Herbalife disclosed in May that it had entered into a settlement agreement with the government. Today’s court proceedings make it official.