Methode Electronics, a Chicago-based technology company, announced in its quarterly regulatory filing Thursday that it has received a subpoena from the U.S. Securities and Exchange Commission (SEC) concerning its compliance with the Foreign Corrupt Practices Act (FCPA). The subpoena, which was issued on November 1, seeks documents and information related to the company’s operations in certain foreign jurisdictions, as well as financial and accounting records that may be tied to FCPA concerns.
The FCPA, a key U.S. anti-bribery statute, prohibits companies with U.S. ties from offering bribes or other illicit payments to foreign government officials in order to gain a business advantage.
In the filing, Methode acknowledged the SEC’s request and stated that it is fully cooperating with the investigation. The company noted that while it is unable to predict the specific outcomes or costs of the investigation, including any potential fines or penalties, it recognizes the possibility of financial consequences arising from the inquiry.
During an earnings call on Thursday, Methode’s CEO Jon DeGaynor, who joined the company in July, refrained from providing further details about the subpoena but reiterated the company’s commitment to compliance. “We are committed to compliance and are actively investing in our compliance resources and processes to strengthen our internal controls,” DeGaynor said.
Founded in 1946, Methode Electronics designs and manufactures products for original equipment manufacturers (OEMs) across a variety of sectors, including transportation, cloud computing infrastructure, construction equipment, and consumer appliances. For the fiscal year ending in April, the company reported $1.1 billion in sales.
As the SEC’s investigation unfolds, employees should be aware that the SEC operates a whistleblower program that allows individuals to report legal violations anonymously. Employees who report to the SEC can obtain increased protection against retaliation under Federal law, and the possibility of claiming a whistleblower reward if their information leads to a successful enforcement action. Of note, employees in compliance and audit must follow specific procedures before reporting to the SEC if they wish to be eligible for a reward.
