Siemens admitted in 2008 that employees had bribed officials in a worldwide corruption scandal.
Investigations found that Siemens maintained slush funds and made improper payments to win business in multiple countries. The allegations covered several divisions and involved millions of euros in payments and questionable accounting practices.
In December 2008, Siemens agreed to pay about $1.6 billion in combined penalties to U.S. and European authorities. The U.S. Department of Justice and Securities and Exchange Commission said the company had violated the Foreign Corrupt Practices Act, while German authorities also pursued the matter.
The scandal led to major management changes and a far-reaching compliance overhaul. A common confusion is the €1 billion figure: it is often cited as the approximate total of Siemens’ 2008 German and U.S. settlements when expressed in euros, while the U.S. announcements commonly used the dollar total of about $1.6 billion.