After Innospec Inc. agreed to pay more than $40million in relation with also Foreign Bribery allegations an investigation on behalf of current long term investors in Innospec Inc. (NASDAQ:IOSP) concerning whether certain officer and directors can be held liable was announced.

Innospec Inc had previously already disclosed that it had been the subject of investigations by U.S. and UK government authorities into legacy transactions conducted by Innospec and its subsidiaries in potential violation of among others laws, the United Nations Oil for Food Program (OFFP) and the United States Foreign Corrupt Practices Act (FCPA). According to the Justice Department the Foreign Corrupt Practices Act was enacted for the purpose of making it unlawful for certain classes of persons and entities to make payments to foreign government officials to assist in obtaining or retaining business. Specifically, the anti-bribery provisions of the FCPA prohibit the willful use of the mails or any means of instrumentality of interstate commerce corruptly in furtherance of any offer, payment, promise to payto a foreign official to influence the foreign official in his or her official capacity to secure any improper advantage in order to assist in obtaining or retaining business for or with, or directing business to, any person. Innospec Inc disclosed that in the first quarter of 2010, it entered into a $40.2 million settlement to resolve those foreign bribery allegations and violations of the OFFP and FCPA.

Innospec Inc said that as part of the settlement Innospec Inc among other things pled guilty in the U.S. District Court for the District of Columbia to a twelve count indictment alleging wire fraud under the United Nations Oil for Food Program and violations of the Foreign Corrupt Practices Act in relation to illegal payments made to government officials in Iraq and Indonesia; it agreed to pay a criminal fine of between $7.7 million and $14.1 million contingent on future trading and to retain an independent corporate compliance monitor for at least three (3) years, subject to conditions which would allow for a reduction or extension of the term; it agreed to disgorge $11.2 million to settle a civil action brought by the SEC alleging Securities Exchange Act of 1934 and FCPA violations for failing to maintain proper internal controls and books and records violations; and it pled guilty in the Southwark Crown Court, England, to criminal charges of conspiracy to corrupt relating to the United Kingdom Serious Fraud Office investigation with a Crown Court penalty of $12.7 million.

The investigation by a law firm on behalf of current long term investors in Innospec Inc. (NASDAQ:IOSP) concerns whether certain officer and directors at Innospec Inc. can be held liable in connection with the recent settlement agreement.
While Innospecs 12 months Total Revenue went from $532.10million in 2006 to $640.50million in 2008 and $598.50million in 2009, its Net Income fell from $11.40million in 2006 to $6.40million in 2009. For the first three quarters in 2010 Innospec Inc. reported a combined 9months Total Revenue of $505.90million.

Shares of Innospec Inc. (Public, NASDAQ:IOSP) rose from roughly $10 in 2006 to over $30 in 2007. During 2008 IOSP shares lost value but still traded during Mid 2008 at over $24 per share. Then in the second half of 2008 and first half of 2009 IOSP shares decreased to as low as $3.04 per share. Since then IOSP shares were able to regain value to recently $22 per share.