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ARTICLE · 21 MARCH 2017

SEC'S $13 Million Bite Into Cadbury

In this hotline, we provide the case background, describe the salient features of the SEC order and discuss implications of this case.

IndiaCorporate/Commercial Law
  • In early January this year, US-based Mondelēz International, Inc. ("Mondelēz"), the global confectionary giant, settled a five-year old investigation by the U.S. Securities and Exchange Commission ("SEC") for alleged bribery, without agreeing with or denying allegations, for $13 million.
  • The investigation was in relation to compliances arising from certain transactions with agents regarding a new manufacturing plant at Baddi, Himachal Pradesh, India by Mondelēz India Foods Pvt. Ltd (formerly known as Cadbury India Pvt. Ltd., "Cadbury India").
  • Although the incident happened before Mondelēz had effectively acquired Cadbury India, it co-operated with the SEC and undertook large-scale remedial measures in the process.

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