On September 28, 2023, the U.S. Securities and Exchange Commission (“SEC”) issued a press release “announc[ing] that Clear Channel Outdoor Holdings Inc. agreed to pay more than $26 million to resolve charges that it bribed Chinese government officials to obtain outdoor advertising contracts in violation of the Foreign Corrupt Practices Act (FCPA).” The press release further stated that Clear Channel “violated the FCPA in connection with the actions of its agent, Clear Media Limited, which, at the relevant time, was a Clear Channel majority-owned subsidiary in China.”
The press release also stated that “[s]pecifically, the order finds that, from at least 2012 through 2017, Clear Media bribed Chinese government officials to obtain contracts required to sell advertising services to public and private sector clients for display on public bus shelters and other outdoor displays.” The press release continued to state “[i]n addition, the order finds that Clear Media used sham intermediaries and false invoices to generate cash for off-book ‘customer development’ consultants engaged to win advertising business from government and private customers.” Finally, the press release stated that “[t]he order further finds that, from at least 2012 through 2019, Clear Channel failed to ensure that sufficient internal accounting controls were in place at Clear Media.”
On this news, Clear Channel’s stock price fell 3% to close at $1.58 per share on September 29, 2023.
