Rolls-Royce - Cooperation Not Confession Unlocks 50% DPA Discount

Yesterday was a significant day for the SFO as its Deferred Prosecution Agreement (DPA) with Rolls-Royce PLC was given the seal of approval by Sir Brian Leveson.

The resolution is the highest ever enforcement action against a company in the UK for criminal conduct. The fine, totalling £497m, comprises a disgorgement of profit (£258,170,000) and a financial penalty (£239,082,645). Rolls-Royce must also pay the SFO's costs (approximately £13m). The fine incorporates a discount of 50% reflecting the "extraordinary cooperation" of Rolls-Royce during the investigation.

The indictment (suspended for the term of the DPA) identifies conduct which stands at the most serious end of the scale - 12 counts of conspiracy to corrupt, false accounting and failure to prevent bribery are detailed in the Statement of Facts spanning a period of 25 years and multiple jurisdictions, depicting a company where bribery and corruption went to the core of its business.