Juniper's shares fall 5.6 percent after DoJ, SEC bribe allegations emerge
Juniper Networks (NYSE: JNPR) shares fell 5.6 percent on Friday to $20.92 after the vendor revealed that it is under investigation for possibly violating U.S. Foreign Corrupt Practices Act.
In a filing, the vendor said that it is being investigated by both the U.S. Department of Justice and U.S. Securities and Exchange Commission. Under the Foreign Corrupt Practices Act, U.S.-based companies are barred from paying bribes to foreign officials so they can win a contract.
Michael Busselen, a spokesman for Juniper, told Bloomberg that it is "cooperating" with the DoJ and SEC and is "unable to predict the duration, scope or outcome of these investigations."
Juniper may be the latest vendor to come under investigation for engaging in potential bribery of foreign officials, but they're hardly alone.
IBM (NYSE: IBM) had to pay $10 million in 2011 over charges that it paid bribes to South Korea and China. Earlier, Hewlett-Packard (NYSE: HPQ) faced an investigation from the Justice Department, SEC, and German prosecutors that its German subsidiary engaged bribery, embezzlement and tax evasion related to a $44.5 million contract with the Office of the Prosecutor General of the Russian Federation.
These charges come at a transitional time for Juniper. Last month, Juniper's CEO Kevin Johnson announced that he would retire to focus "personal priorities," but will remain in his position until a replacement has been found.
Despite seeing an industry-wide slowdown in the router segment, Juniper and Cisco (Nasdaq: CSCO) continued to lead the market.
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