At least three investors filed lawsuits in State Court against directors of Pride International, Inc. for allegedly breaching their fiduciary duties in connection with foreign bribery allegations.
According to the complaints all plaintiffs allege that directors of Pride International breached their fiduciary duties to Pride International in connection to 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.

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 pay…to 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.”

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.

Pride International said it expects 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, Inc is also named, among several other companies, in an investigation by the U.S. Department of Justice as a costumer of Swiss logistics company Panalpina Group concerning foreign bribery allegations. 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. Furthermore, the Wall Street Journal recently reported that Panalpina is expected to pay around $85 million in fines to settle charges that it violated the U.S. Foreign Corrupt Practices Act.

Houston, Texas based Pride International, Inc. is an offshore drilling contractor Pride International Inc. reported in 2006 $1.518billion in 12 Months total revenue, in 2007 $1.329billion, in 2008 $1.702billion, and in 2009 $1.594billion. For the first two quarters in 2010 Pride International Inc. was able to report $362.80million, respectively $350.30million in total revenue. Its Net Income from $296.50million in 2006 to $778.30million in 2007, and from $851.10million in 2008 to $285.80million. For the first two quarters in 2010 Pride International Inc. was able to report $73.00million, respectively $57.50million.

Shares of Pride International, Inc. (NYSE:PDE) closed on Monday, October 25, 2010, at $30.66 per share, down from its current 52weekHigh of $34.36 per share. During 2008 PDE shares reached as high as $47.79 per share, before falling to as low as $12.91 per share in December 08.