Akamai Conducts Internal Probe of Sales Practices AbroadAntonia Massa
Akamai Technologies Inc., a cloud-services provider, said it is conducting an internal investigation of its sales practices in an unspecified foreign country.
The company’s probe, with the assistance of outside counsel, is reviewing whether Akamai complied with the U.S. Foreign Corrupt Practices Act and other laws, the Cambridge, Massachusetts-based company said in its 10-K filing Monday evening. Akamai said the country in question accounts for less than 1 percent of revenue.
“We cannot predict the outcome of this matter,” the company wrote. Akamai said it hasn’t made any provision regarding the investigation in its financial statements.
“The matter came to light internally and not through external law-enforcement action,”Jeff Young, an Akamai spokesman, said Tuesday. The company said it had notified the Justice Department and the Securities and Exchange Commission of the probe.
The 1977 FCPA is an antibribery law that bars people and companies from making payments to foreign government officials to promote or retain business.
Akamai shares fell 1.8 percent to close at $69.86.