NCR Declines Most in Two Years After Corruption Allegations
NCR Corp. (NCR), a maker of automated teller machines and payment systems, tumbled the most in two years after saying 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 today 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.”
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