Welcome!

iPhone Authors: Maureen O'Gara, Adam Blum, David Weinberger, John Funnell, Jeff Browning

Related Topics: Oracle, GovIT

Oracle: Article

Oracle-Sun: Latest 10-Q SEC Filing by Sun Notes "Potential Violations"

Sun notifies SEC it may have violated the Foreign Corrupt Practices Act
By Maureen O'Gara
Article Rating:
May 11, 2009 02:00 PM EDT
Reads:
 2,239

On page 40 of its latest 10-Q filing with the SEC, Sun notes that it may have violated the Foreign Corrupt Practices Act. The Wall Street Journal, which broke the story, quotes a lawyer who specializes in this sort of thing as saying that potential violations are usually uncovered when companies are doing due diligence ahead of an acquisition. So that suggests that it could have surfaced during IBM’s due diligence since, as far as anyone knows, Oracle never did any due diligence on Sun.

The filing doesn't specify when the “potential violations” happened or over how long a period of time they occurred, merely that during fiscal 2009, which started last July, Sun “identified activities in a certain foreign country that may have violated the Foreign Corrupt Practices Act (FCPA).”

The filing says Sun “initiated an independent investigation with the assistance of outside counsel and took remedial action.” What exactly it didn’t say. Then it “recently made a voluntary disclosure with respect to this and other matters” to the Justice Department, the Securities and Exchange Commission and “the applicable governmental agencies in certain foreign countries regarding the results of our investigations to date.”

Sun observes that it could be open to “monetary penalties, criminal sanctions and in some cases debarment from doing business with the US federal government in connection with FCPA violations, any of which could have a material effect on our business.”

And, we assume, such a remedy would survive any acquisition by Oracle, whose boss Larry Ellison insists he’s going to keep Sun intact and not sell off its hardware business as widely speculated.

Oracle - which may run Sun as a wholly owned subsidiary - told the SEC that it learned of the matter before it cut the acquisition deal with Sun.

Published May 11, 2009 – Reads 2,239
Copyright © 2009 SYS-CON Media, Inc. — All Rights Reserved.
Syndicated stories and blog feeds, all rights reserved by the author.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.