Universal Corp. to pay $9M to DOJ, SEC in settlement of bribery investigation

Universal Corp. to pay $9M to settle bribery probe

RICHMOND, Va. — Tobacco processor and seller Universal Corp. said Friday that it will pay nearly $9 million to the Department of Justice and the Securities and Exchange Commission to settle a bribery investigation.

The company said it informed federal authorities that payments had been made to foreign government officials in relation to business conducted in numerous countries, and that it has cooperated with the investigation.

Of the settlement payment, $4.58 million is profits and prejudgment interest, Universal said. Universal also said that its Brazilian subsidiary, which pleaded guilty to the Foreign Corrupt Practices Act, will pay $4.4 million in fines.

Universal said that it had already put aside funds to cover the settlement amount, so it will not have to log a charge for its fiscal 2011 results.

Universal will use an independent corporate monitor to look over its accounting practices and will change or take up new policies as needed, the company said.

The Justice Department will not prosecute Universal if it follows terms of an agreement between the department and the company for the next three years, Universal said.

Universal said its board and the board of its Brazilian subsidiary approved the settlement agreement.

Universal shares fell 97 cents, or 2.6 percent, to $37.10