Siemens paid over $1.6 billion in 2008 to resolve bribery investigations across several countries.
The Siemens scandal involved allegations that the company used slush funds, consultants, and secret payments to win business contracts. Investigators in Germany and the United States examined bribery connected with projects in multiple regions and business divisions.
In December 2008, Siemens agreed to pay about $1.6 billion in combined penalties and disgorgement to U.S. and German authorities. The U.S. resolutions involved the Department of Justice and the Securities and Exchange Commission. The penalties were among the largest ever imposed under anti-bribery laws at that time.
The case is often confused with a single-country corruption prosecution, but it was multinational. Siemens also replaced senior leadership and strengthened its compliance systems. The scandal is a major example of how internal controls can fail inside a large global corporation, even when the company operates in many regulated markets.