Microsoft (MSFT) Under Prelim. Probe by SEC, DoJ Over Alleged Bribery
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Price: $368.57 -1.18%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 1%
Revenue Growth %: +14.7%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 1%
Revenue Growth %: +14.7%
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Microsoft (Nasdaq: MSFT) is under a little pressure Tuesday afternoon following reports that the U.S. Department of Justice and U.S. Securities and Exchange Commission are conducting a preliminary probe into kickback allegations.
Officials are looking into allegations made by a former rep in China, along with Microsoft's relationships with certain consultants and resellers in Romania and Italy.
The Chinese rep who was responsible for landing new business, said an official at a Microsoft China subsidiary told him to offer kickbacks in exchange for entering software contracts. The rep made claims about the operation last year.
A formal investigation has not been undertaken. John Frank, VP and General Counsel at Microsoft, commented to the WSJ today, "Like every large company with operations around the world we sometimes receive allegations about potential misconduct by employees or business partners." Frank said Microsoft is fully cooperating with officials.
Shares of Microsoft are down 0.1 percent after being up earlier on the session.
Officials are looking into allegations made by a former rep in China, along with Microsoft's relationships with certain consultants and resellers in Romania and Italy.
The Chinese rep who was responsible for landing new business, said an official at a Microsoft China subsidiary told him to offer kickbacks in exchange for entering software contracts. The rep made claims about the operation last year.
A formal investigation has not been undertaken. John Frank, VP and General Counsel at Microsoft, commented to the WSJ today, "Like every large company with operations around the world we sometimes receive allegations about potential misconduct by employees or business partners." Frank said Microsoft is fully cooperating with officials.
Shares of Microsoft are down 0.1 percent after being up earlier on the session.
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