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UPDATE: Bio-Rad Labs Announces Resolution of Foreign Corrupt Practices Act

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Bio-Rad Laboratories,
Inc. (NYSE: BIO) and (NYSE: BIO.B), a global provider of life science
research and clinical diagnostic products, today announced the full
resolution of previously disclosed investigations by the U.S.
Department of Justice (DOJ) and Securities and Exchange Commission
(SEC) into past violations of the Foreign Corrupt Practices Act
(FCPA) that occurred from 2005 to 2010 related to Thailand, Vietnam,
and Russia.

Bio-Rad discovered the potential FCPA violations and self-reported
them to the DOJ and SEC in May 2010. The Company subsequently
conducted a thorough global investigation with the assistance of
independent legal and forensic specialists, terminated involved
employees and third party agents, and significantly enhanced its
internal controls, procedures, training and compliance functions
designed to prevent future violations. The settlement fully resolves
all outstanding issues related to these investigations.

In announcing the settlement, both the DOJ and the SEC recognized
Bio-Rad's self-disclosure, and extensive cooperation and remediation.
The DOJ noted the Company's "full" cooperation including "conducting
an extensive internal investigation in several countries, voluntarily
making U.S. and foreign employees available for interviews,
voluntarily producing documents from overseas, summarizing its
findings, translating numerous documents, and providing timely
reports on witness interviews" to assist in the government's
investigation. The SEC further acknowledged the Company "undertook
significant and extensive remedial actions."

"The actions that we discovered were completely contrary to Bio-Rad's
culture and values and ethical standards for conducting business,"
said Norman Schwartz, Bio-Rad President and Chief Executive Officer.
"We took strong, decisive action to end the problematic practices and
prevent anything like this from happening in the future, including
terminating involved employees and committing substantial resources
to strengthening our compliance functions and financial controls.
Bio-Rad prides itself on operating with the highest levels of
integrity, and I am pleased that this settlement fully resolves the
government's FCPA investigation and puts this matter behind us."

The DOJ declined to prosecute Bio-Rad, and the parties entered into a
Non-Prosecution Agreement under which Bio-Rad has agreed to pay a
penalty of $14.35 million. Under the terms of the civil settlement
with the SEC, the Company will pay $40.7 million in disgorgement and
prejudgment interest. The Company has also agreed to certain future
reporting, compliance and self-monitoring provisions over the next
two years. Bio-Rad had previously reserved $43 million for this
settlement and has reserved an additional $12.05 million in the third
quarter so that the total settlement amount will have been fully
reserved as of September 30, 2014.

 

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