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World Acceptance Corporation Resolves Previously Disclosed FCPA Matter with U.S. Authorities
Agreement Resolves Matter Related to former Subsidiary in Mexico GREENVILLE, S.C.--(BUSINESS WIRE)-- World Acceptance Corporation (NASDAQ: WRLD) (“the
About this update from World Acceptance Corporation
[{"type":"text","content":"\nAgreement Resolves Matter Related to former Subsidiary in Mexico\n\n GREENVILLE, S.C.--(BUSINESS WIRE)--\nWorld Acceptance Corporation (NASDAQ: WRLD) (“the Company”) today announced that it has reached an agreement with the Securities and Exchange Commission and the Department of Justice to resolve allegations primarily involving the Company’s former subsidiary in Mexico.\n\n\nThe agreement concludes investigations into alleged violations of the Foreign Corrupt Practices Act involving the Company’s former WAC de Mexico, S.A. de C.V. subsidiary through June 2017. The Company has made improvements in operations and management since the allegations were made, including naming R. Chad Prashad as President and Chief Executive Officer; naming Luke J. Umstetter as General Counsel, Chief Compliance Officer and Secretary; and selling its Mexican subsidiary in July 2018. The Company has no remaining foreign subsidiaries, and it conducts no business outside of the United States.\n\n\n“We are pleased to reach these resolutions which reflect the Company’s full and robust cooperation in this matter,” said Luke Umstetter. “Having undertaken an extensive independent investigation led by our board and addressing these past issues, we emerge with a renewed focus on operating our business with integrity and in compliance with applicable laws and regulations.”\n\n\n“Since selling our foreign businesses over two years ago, our team has been focused on designing and offering affordable credit solutions that help people realize their financial goals,” said Chad Prashad, President and CEO. “We are pleased to put this matter behind us and believe we are well positioned for the future.”\n\n\nUnder the terms of the settlement with the SEC, the Company has agreed to disgorge approximately $17.8 million earned by the Viva division of its former Mexican subsidiary and pay an additional $3.9 million in prejudgment interest and civil penalties. This amount is consistent with the accrual previously disclosed and recorded by the Company. The SEC resolution acknowledges WAC’s remedial acts and cooperation. In connection with this settlement, the Company has neither admitted nor denied the underlying allegations.\n\n\nThe U.S. Department of Justice (“DOJ”) also made public a letter declining to prosecute the Company and closing its investigation into the Company...