By Joe Palazzolo
Drilling company Hercules Offshore Inc. said Thursday that it is under investigation by the Justice Department and the Securities and Exchange Commission for possible violations of foreign bribery law.
The Houston-based company received a subpoena this month from the SEC and has been notified by the Justice Department that “certain of the company’s activities,” are under review, Hercules said in a regulatory filing.
The SEC subpoenaed “certain documents” in connection with a probe of possible violations of securities laws, including breaches of the Foreign Corrupt Practices Act, which bars the bribery of foreign officials, Hercules said.
The company received the subpoena on April 4 and the Justice Department notified the company of its investigation the next day.
Stephen Butz, senior vice president, chief financial officer and treasurer at Hercules, said that the company has retained outside counsel to assist with the matter and that “we intend to cooperate fully” with the agencies in their investigation.
An SEC spokesman declined to comment. A spokeswoman for the Justice Department did not immediately respond to a request for comment.
Hercules specializes in contract drilling, liftboat and inland barge services. The company has equipment in the U.S., Latin America, the Middle East, West Africa, Indian and Malaysia, according its website.
Hercules shares fell more than 10% in after-hours action Thursday following the disclosure.