SAO JOSE DOS CAMPOS, Brazil,
July 29, 2016 /PRNewswire/ -- Embraer
S.A. (NYSE: ERJ; BM&F BOVESPA: EMBR3) announces to its
shareholders and the market, pursuant to its Material Fact as of
May 19, 2015, that the negotiations
with the U.S. Department of Justice (DOJ) and the Securities and
Exchange Commission (SEC) for the settlement of the allegations of
non-compliance with the U.S. Foreign Corrupt Practices Act (FCPA)
have significantly progressed, to the point that Embraer is
recognizing a US$ 200 million loss
contingency in the quarter ended June 30,
2016, reflecting the likely outcome of this matter. The
amount of the contingency is an estimate and has not been finally
determined.
In addition to the monetary consequences, a final settlement
with the DOJ and SEC is likely to include: (1) a deferred
prosecution agreement (DPA), under which the prosecution of
criminal charges against Embraer will be deferred for the term of
the DPA, and dismissed upon the expiration of the term of the DPA,
and (2) an imposition of an independent monitor to assess the
Company's compliance with the terms of any agreement that may be
reached with the U.S. authorities. These may not be the only
non-monetary consequences contained in any final settlement.
The negotiations with the U.S. authorities are ongoing and thus
subject to change. There is no assurance that Embraer will
ultimately reach a final settlement of these matters with the U.S.
government agencies. Related proceedings and developments in
other countries are ongoing and could result in additional fines,
which may be substantial, and possibly other substantial sanctions
and adverse consequences.
José Antonio de Almeida
Filippo
Executive Vice-President and Chief Financial
Investor Relations Officer
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SOURCE Embraer S.A.