| NEW YORK, March 14
NEW YORK, March 14 Cisco Systems Inc is
investigating potential violations of U.S. bribery laws by the
company and its resellers in Russia, Eastern Europe and Central
Asia, but doesn't expect financial results to be materially
affected, it said in a regulatory filing.
Cisco, the network equipment maker, launched the probe at
the request of the U.S. Justice Department and the Securities
and Exchange Commission after allegations arose that some of its
business and discounting practices violated the U.S. Foreign
Corrupt Practices Act, the company said.
The law prohibits U.S. corporations from bribing foreign
officials, candidates and parties.
Cisco declined to comment beyond what the filing, dated Feb.
"The company takes any such allegations very seriously and
is fully cooperating with and sharing the results of its
investigation with the Commission and the Department," Cisco
said in the filing.
"While the outcome of the Company's investigation is
currently not determinable, the Company does not expect that it
will have a material adverse effect on its consolidated
financial position, results of operations, or cash flows," it
In the filing, Cisco said the countries in the investigation
collectively contribute less than 2 percent of its revenues.
In 2010, U.S. and German authorities launched an ongoing
investigation into whether Hewlett-Packard Co employees
in a German subsidiary violated the act and engaged in a bribery
scheme involving a 35 million euro ($44.5 million) contract to
provide equipment to the Chief Public Prosecutor's Office of the
Shares of San Jose, California-based Cisco fell 0.6 percent
to $21.39 on the New York Stock Exchange at midday.