Investigation Overview
San Diego, April 3, 2012 (Shareholders Foundation) -- An investigation for current long term investors in Dun and Bradstreet Corp (NYSE:DNB) shares over possible breaches of fiduciary duties by certain officers and directors at Dun and Bradstreet Corp (NYSE:DNB) in connection with allegations that certain employees may have violated the Foreign Corrupt Practices Act.
According to the investigation by a law firm the investigation focuses on whether Dun and Bradstreets directors and officers were aware, or should have been aware, of any improper actions by certain employees at its Shanghai Roadway D&B Marketing Services Co Ltd. operations in China, which might have been in violation of the U.S. Foreign Corrupt Practices Act, which prohibits companies from making improper payments to foreign officials for the purpose of obtaining or keeping business
Dun and Bradstreet Corp reported that its annual Revenue slightly increased from $1.67billion in 2010 to $1.75billion in 2011 and its Net Income rose from $252.10million in 2010 to $260.30million in 2011. However, its Net Income in 2010 and 2011 was below its Net Income for 208 and 2009, which was $319.40million, respectively $310.60million.
Dun and Bradstreet Corp acquired the Shanghai Roadway D&B Marketing Services Co Ltd.s operations in 2009, and for 2011 Shanghai Roadway D&B Marketing Services Co Ltd. accounted for approximately $23 million in revenue of Dun and Bradstreet Corp and $2 million in operating income.
Shares of Dun and Bradstreet Corp (NYSE:DNB) rose from as low as $61.61 per share in September 2011 to as high as $86.50 on March 13, 2012.
Then on March 18, 2012, Dun and Bradstreet Corp (NYSE: DNB) announced that it has temporarily suspended its Shanghai Roadway D&B Marketing Services Co Ltd. operations in China, pending an investigation into allegations that its data collection practices may violate local Chinese consumer data privacy laws.
In addition, Dun and Bradstreet Corp said it has been reviewing certain allegations that local employees may have violated the Foreign Corrupt Practices Act and certain other laws in its China operations.
D Dun and Bradstreet Corp said it has voluntarily reported these matters to the U.S. Department of Justice and the U.S. Securities and Exchange Commission.
NYSE:DNB shares closed on Friday, March 30, 2012 at $84.73 per share.