Methode Electronics Under SEC Scrutiny for Compliance with Anti-Corruption Laws

Methode Electronics, the Chicago-based manufacturer known for its contributions to transportation and cloud computing industries, is facing questions from the Securities and Exchange Commission (SEC) over its adherence to anti-corruption laws, including the Foreign Corrupt Practices Act (FCPA).

The company disclosed last week that it received a subpoena from the SEC on November 1, requesting documents and details about its operations in certain foreign markets. The inquiry also extends to financial and accounting practices linked to FCPA compliance.

The FCPA, a cornerstone of U.S. anti-bribery law, bars companies from using illicit payments to secure business advantages with foreign officials. While Methode has pledged full cooperation with the investigation, it acknowledged that potential penalties and costs could arise. Specific figures remain uncertain at this time.

CEO Acknowledges Challenges, Reiterates Commitment

On a Thursday earnings call, CEO Jon DeGaynor—who stepped into the role in July—addressed the investigation with a measured tone. While unable to share further details, DeGaynor emphasized the company’s dedication to compliance, saying, “We’re committed to investing in our compliance resources and processes.”

His comments signal a broader push to shore up the company’s risk management framework amid regulatory scrutiny.

Methode Electronics has long been a player in industries ranging from transportation to consumer appliances. With $1.1 billion in sales for the fiscal year ending in April, the company’s global footprint is extensive—highlighting both its success and the challenges of navigating complex regulatory landscapes abroad.

For now, Methode’s leadership faces the dual task of managing the ongoing inquiry while reassuring stakeholders. Regulatory investigations of this nature often serve as a reminder of how critical robust compliance practices are in today’s interconnected world.

As the SEC’s investigation unfolds, the stakes are high—not just in terms of potential fines but also in safeguarding the company’s reputation. For Methode, the focus will be on demonstrating transparency and accountability as it works to resolve the matter.

The GRC Report is your premier destination for the latest in governance, risk, and compliance news. As your reliable source for comprehensive coverage, we ensure you stay informed and ready to navigate the dynamic landscape of GRC. Beyond being a news source, the GRC Report represents a thriving community of professionals who, like you, are dedicated to GRC excellence. Explore our insightful articles and breaking news, and actively participate in the conversation to enhance your GRC journey.