Global networking company discloses investigation into potential improper payments by former employees

On February 16, 2021, Cisco Systems, Inc., a global networking technology company based in California, disclosed in a securities filing that it had initiated an internal investigation into allegations that former Cisco employees in China had received funds through a “self-enrichment scheme,” and that certain of these employees may have made or directed payments from these funds to various third parties, including to employees of state-owned entities.  Cisco stated that it had voluntarily disclosed its investigation to the US Department of Justice and US Securities and Exchange Commission, and is updating the DOJ and SEC on the results of its investigation.  Cisco stated that—although the outcome of the investigation is not currently determinable—it did not expect that it would have a material adverse effect on the Company’s consolidated financial position, results of operations, or cash flows.

Form 10-Q