Bridgestone fined $28 million in marine hose cartel plea

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Bridgestone fined $28 million in marine hose cartel plea

0 j* W. ]0 w5 O! k/ V7 E- I3 NMonday, September 19, 2011

+ i& e( ]' h. B' @: c' STokyo - Bridgestone announced that it has entered into a plea agreement, subject to court approval, with the U.S. Department of Justice on September 12, concerning Bridgestone’s involvement in international cartel activities relating to the sale of marine hose. The DOJ has also investigated improper payments to government officials through local sales agents focusing primarily on Latin America in connection with certain industrial products. Under the plea agreement, Bridgestone will plead guilty to an antitrust conspiracy with respect to marine hose and a conspiracy to violate the Foreign Corrupt Practices Act. The agreed on fine will be $28 million, a significant reduction from the applicable sentencing guidelines due to Bridgestone’s cooperation and remediation efforts. Bridgestone said it has cooperated fully in this matter. The DOJ has agreed that Bridgestone’s cooperation has been “extraordinary.” The DOJ has also acknowledged that Bridgestone has engaged in extensive remediation including dismantling the International Engineered Products Department, closing its Houston office of Bridgestone Industrial Products of America, terminating many of its third party agents, and taking remedial actions with respect to its employees. Bridgestone has also decided to withdraw from the marine hose business. This plea agreement is subject to approval by the U.S. District Court in Houston Texas. Upon approval, this plea agreement will bring the investigation to an end for Bridgestone and its subsidiaries involved in the production or sale of marine hose or other industrial products.