In the interest of keeping our Law Shield members apprised of news about the gun community, we report that Smith & Wesson Holding Corporation (NASDAQ Global Select: SWHC) announced on July 28 that it has reached an approximate $2 million civil settlement with the Securities and Exchange Commission (SEC).
The settlement is related to a 2010 inquiry stemming from a Department of Justice (DOJ) investigation, which was later dropped by the DOJ. The company consented to the settlement without admitting or denying the findings of the inquiry.
In an administrative order, the SEC said that Smith & Wesson offered improper payments to foreign government officials to get or keep business from 2007 through 2010, violating the Foreign Corrupt Practices Act. The SEC said S&W used third parties to pay bribes to foreign officials in Bangladesh, Indonesia, Nepal, Pakistan, and Turkey.
The SEC order said the company failed to design and implement a system of internal controls or an appropriate FCPA compliance program.
President and CEO of Smith & Wesson James Debney said, “We are pleased to have concluded this matter with the SEC and believe that the settlement we have agreed upon is in the best interests of Smith & Wesson and its shareholders. Today’s announcement brings to conclusion a legacy issue for our company that commenced more than four years ago, and we are pleased to now finally put this matter behind us.”
The company’s brands include Smith & Wesson®, M&P®, and Thompson/Center Arms™. Smith & Wesson facilities are located in Massachusetts, Maine, and Connecticut.