Tags: ncr | corruption | allegations | stock

NCR Shares Slide 9.8% after Corruption Allegations

Tuesday, 14 August 2012 04:43 PM

Shares of NCR Corp., a maker of automated teller machines and payment systems, tumbled the most in two years Tuesday after the company said it received allegations about business practices that might violate U.S. laws.

The information was delivered anonymously from a “purported whistleblower,” Duluth, Georgia-based NCR said Tuesday in a regulatory filing. The actions alleged “might constitute violations of the Foreign Corrupt Practices Act,” the filing said.

Should NCR be found guilty, it could be required to pay penalties and its ability to generate revenue in certain parts of the world may come under pressure, said Douglas Greiner, an analyst at Compass Point Research & Trading LLC. The allegations concern practices in China, the Middle East and Africa.

“The potential impact is legal risk and competitive risk,” Greiner said.

Lou Casale, an NCR spokesman, didn’t return requests for comment.

NCR shares fell 9.8 percent to $22.65 at the close in New York, the biggest decline since April 23, 2010.

Some of the allegations relate to NCR’s business in Syria, where it has ceased to operate, according to the filing.

“NCR has certain concerns about the motivation of the purported whistleblower and the accuracy of the allegations it received, some of which appear to be untrue,” the company said. “NCR takes all allegations of this sort seriously and promptly retained experienced outside counsel and began an internal investigation that is ongoing.”

© Copyright 2020 Bloomberg News. All rights reserved.

1Like our page
Tuesday, 14 August 2012 04:43 PM
Newsmax Media, Inc.
Newsmax TV Live

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

© Newsmax Media, Inc.
All Rights Reserved