MicroStrategy Brasil Ltda. has recently announced a leniency agreement with the Federal Comptroller General (CGU) and the Federal General Attorney’s Office (AGU) under the Brazilian Clean Companies Act. This agreement comes after an internal review initiated in 2018 found that the company failed to comply with Brazilian procurement regulations in the sale of business intelligence products and services to Brazilian government clients between 2014 and 2018.
As part of the leniency agreement, the company agreed to pay BRL 6,157,183.65 (approximately USD 1.1 million) and is granted immunity from debarment and other sanctions. Additionally, the company committed to further improve its compliance program. The CGU has also agreed to dismiss its pending administrative action against the company over alleged procurement violations.
The company's commitment to business integrity and ethical standards is evident through its voluntary disclosure of information and the adoption of extensive remediation measures. This commitment is further demonstrated by a separate leniency agreement with the Brazilian General Superintendence of the Administrative Council for Economic Defense (SG/CADE), announced in January 2023.
Despite these agreements, the company reassures that it does not expect any adverse impact on its operations. It continues to conduct its business in the ordinary course and provide products and services to customers in Brazil, both in the public and private sectors. Following these announcements, the company's shares moved -1.9%, and are now trading at a price of $1277.16. For more information, read the company's full 8-K submission here.
