Pactiv Evergreen discloses SEC likely to close FCPA investigation

Pactiv Evergreen, Inc., a manufacturer of food and beverage packaging based in Illinois, reported in a securities filing on August 5, 2021, that the staff of the US Securities and Exchange Commission had “indicated its intention to close” its investigation into possible violations of the Foreign Corrupt Practices Act by the company’s China subsidiary, Evergreen Packaging Shanghai.

In September 2020, Pactiv made a voluntary disclosure to the US Department of Justice and the SEC about potential violations of the FCPA in China.  The company also conducted an internal investigation, concluding that gift cards of relatively low value had been given to individuals in China in connection with Chinese holidays.  According to Pactiv, the amounts involved were immaterial individually and in the aggregate.  The DOJ closed its investigation without taking action against the company.

Pactiv further noted in its filing that “we have initiated procedures to remediate such practices, including discontinuing the giving of gift cards.”  The company added that as part of its investigation it had identified certain gift, travel and entertainment practices that were not in compliance with the company’s policies, and that the investigation “provided an opportunity” for enhancing controls and providing additional training.

Form 10-Q

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