Analogic Settles Distributor Inquiry

Analogic Corporation ALOG revealed Wednesday that it struck agreements with the SEC, Department of Justice, and the Danish government selling the previously disclosed FCPA investigation in respect of the payments made by its Danish subsidiary on behalf of some of its distributors.

Analogic pointed out it self-reported the matter to the SEC, the DOJ, and the Danish government in 2011. The company also noted that it has undertaken significant remedial measures since then. That included improvements to its compliance program and terminating the employment of some employees of its Danish subsidiary and the relationships with the distributors involved in the transactions.

The company said as a result of the settlement, its Danish subsidiary would pay about $14.9 million in disgorgement, interest, and penalties. According to the company, the amounts to be paid were previously reflected in its financial statements and would not impact its fiscal outlook for the year 2016.

Analogic's President and CEO, Jim Green, commented, "We are pleased to have resolved the matter. The resolution emphasizes the importance of legal and ethical business conduct in all aspects of our business."

The stock traded 0.60 percent down on Wednesday.