After Pride International agreed to pay more than $56million in relation to Foreign Bribery allegation an investigation on behalf of current long term investors in Pride International, Inc. (NYSE:PDE) concerning whether certain officer and directors can be held liable was announced.

Pride International announced in an SEC filing that during the course of an internal audit and investigation relating to certain of its Latin American operations, its management and internal audit department received allegations of improper payments to foreign government officials. The following investigation of its Latin American and other international operations has found evidence suggesting that certain payments, which may violate the U.S. Foreign Corrupt Practices Act, were made directly or indirectly to government officials in Venezuela Mexico, Saudi Arabia, Kazakhstan, Brazil, Nigeria, Libya, Angola, India and the Republic of the Congo. Pride International disclosed information relating to the initial allegations and other information found in the investigation and compliance review to the U.S. Department of Justice and the U.S. Securities and Exchange Commission. Pride International said that it former Chief Operating Officer resigned as Chief Operating Officer effective on May 31, 2006 and has elected to retire from Pride International, although he will remain an employee, but not an officer, until the completion of the investigation and related matters to assist Pride International with the investigation and to be available for consultation and to answer questions relating to its business. Pride International also said that other personnel, including officers, have been terminated or placed on administrative leave or have resigned in connection with the investigation.

About three years ago the U.S. Department of Justice begun looking into several customers of Swiss logistics company Panalpina Group concerning foreign bribery, including Tidewater, Royal Dutch Shell, Nabors Industries Ltd., Noble Corp., Pride International Inc., Transocean Ltd., and others.

Panalpina Group, which has 14,000 employees and branches in more than 80 countries, is a supplier of forwarding and logistics services, specializing in end-to-end supply chain management solutions and intercontinental air freight and ocean freight shipments. According to a recent Wall Street Journal report Panalpina Group is at the center of a sprawling probe into whether it paid officials in places including Nigeria, Saudi Arabia, Algeria and Kazakhstan to expedite services, such as clearing drilling rigs and other equipment through customs.

On November 4, 2010, the Wall Street Journal reported the logistics company admitted paying $27 million in bribes to foreign officials in several countries to expedite services for a raft of companies, including Pride International Inc., Royal Dutch Shell PLC, Tidewater Inc., Transocean Inc., GlobalSantaFe Corp. and Noble Corp. The Panalpina investigation came to light in 2007, after subsidiaries of Vetco International Ltd. pleaded guilty to paying $2.1 million in bribes to Nigerian customs officials through the Swiss logistics company. Vetco agreed to pay $26 million in criminal fines, the largest-ever FCPA penalty at the time.
Panalpina World Transport Holding Ltd., Royal Dutch Shell Plc, Transocean Ltd., Tidewater Marine International Inc. awholly owned subsidiary of Tidewater Inc, Pride International Inc., GlobalSantaFe Corp., which merged with Transocean in 2007, and Noble Corp will pay $236.5 million to resolve a U.S. probe of overseas bribery. The U.S. will collect $156.5 million in criminal penalties and $80 million in civil sanctions for violations of the Foreign Corrupt Practices Act. Panalpina World Transport Holding Ltd agreed to pay a total of $81.9 million; Pride Intl.will pay $56.1 million; Royal Dutch Shell Plc will pay $48.1 million; Transocean/ GlobalSantaFe Corp will pay $20.6 million; Tidewater Marine International Inc will pay $15.7 million, and Noble Corp will pay $8.1 million; and GlobalSantaFe will pay $5.9 million, according to the Justice Department. The Panalpina investigation came to light in 2007, after subsidiaries of Vetco International Ltd. pleaded guilty to paying $2.1 million in bribes to Nigerian customs officials through the Swiss logistics company. Vetco agreed to pay $26 million in criminal fines, the largest-ever FCPA penalty at the time. Soon other companies began examining their relationship with Panalpina, as the SEC and DOJ expanded their investigation.

Pride International said it expected to be able to resolve during 2010 through settlement with the U.S. Department of Justice and the U.S. Securities and Exchange Commission any potential fines, civil and criminal penalties, equitable remedies, and injunctive relief in connection with possible FCPA violations and has therefore set $56.2million aside. Pride International recently agreed to pay $19,341,870 in disgorgement of illicit profit and $4,187,848 prejudgment interest, along with a $32,625,000 criminal penalty or an overall total of $56,154,718 in criminal and civil sanctions after being charged with conspiracy to violate and substantive violations of the FCPAs anti-bribery and books and records provisions.

At least three lawsuits have been filed by Pride Intl investors against directors of Pride International, Inc. for allegedly breaching their fiduciary duties in connection with foreign bribery allegations concerning certain payments made to government officials in Venezuela, Mexico, Saudi Arabia, Kazakhstan, Brazil, Nigeria, Libya, Angola, India, and the Republic of the Congo that may have violated 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.