Redflex ‘does not expect further action’ from US Department of Justice

Traffic enforcement specialist Redflex Holdings says it expects no further legal action or new financial liabilities arising from investigations by the US Department of Justice (DoJ). The action, which has rumbled on for several years, related to misconduct by former employees of US subsidiary Redflex Traffic Systems. The company signed a two-year non-prosecution agreement (NPA) with the DoJ, which has now ended. Under the expired deal, the DoJ agreed not to charge the firm with any offence provided t
January 18, 2019 Read time: 2 mins

Traffic enforcement specialist 112 Redflex Holdings says it expects no further legal action or new financial liabilities arising from investigations by the US Department of Justice (DoJ).

The action, which has rumbled on for several years, related to misconduct by former employees of US subsidiary Redflex Traffic Systems. The company signed a two-year non-prosecution %$Linker: 2 External <?xml version="1.0" encoding="utf-16"?><dictionary /> 0 0 0 link-external agreement false http://www.itsinternational.com/categories/enforcement/news/redflex-enters-into-non-prosecution-agreement-with-united-states/ false false%> (NPA) with the DoJ, which has now ended.

Under the expired deal, the DoJ agreed not to charge the firm with any offence provided the company complied fully with its terms.

Redflex has cooperated with the successful prosecutions of several people, including a high-ranking city of Chicago official and a former chief executive officer of Redflex.

In 2016, the company said: “The misconduct under investigation ended more than four years ago, and the individuals involved have not been employed…for almost four years.”

Redflex agreed to pay reparations of $100,000 to the city of Colombus, Ohio and still has to pay $9 million to the city of Chicago, the next instalment of which is due by the end of the year.

The NPA also said that Redflex had to “revise and address any deficiencies in its compliance code, policies and procedures regarding compliance with applicable anti-bribery and anti-corruption laws”.

In a related development, Redflex has also announced that it has received a letter from the Australian Federal Police stating that it has “concluded its investigation and that no action will be taken regarding the company or a former officer that was the subject of its investigation”.

The company says it “remains committed to the high standard of corporate governance and risk management and to the maintenance of the ‘compliance culture’ that it has developed over many years”.

Enforcement

For more information on companies in this article

Related Content

  • Redflex enforces commitment to ethics
    May 29, 2013
    Redflex has introduced stringent ethical and procedural requirements following an investigation into corruption in Chicago. Like the Phoenix, which also happens to be the name of the company’s home city, Redflex Traffic Systems has been reborn. Following a headline-making public relations debacle late last year, Redflex has reinvented itself, establishing a series of stringent policies and procedures to ensure ethical business conduct, while continuing to deliver the traffic safety technology and services t
    Read More
  • Uber: AB5 ‘does not automatically reclassify’ drivers
    September 18, 2019
    Business life may be about to get trickier for transportation network companies following the passing of a new law in California which aims to give gig economy workers more rights. Assembly Bill 5 (AB5), which is due to come into effect in January next year, says that “a person providing labour or services for remuneration shall be considered an employee rather than an independent contractor” - unless three points are proved. One, that “the hiring entity demonstrates that the person is free from the con
    Read More
  • European Court of Justice rules Uber as a Transport service
    December 22, 2017
    The European Court of Justice has ruled against Uber, concluding it to be a transport service, which will require it to have stricter regulation and licensing as a taxi operator within the EU. The decision follows a challenge presented by taxi drivers in Barcelona who were seeking a declaration from a court in 2014 that activities of Uber Systems Spain, amounted to misleading practices and acts of unfair competition.
    Read More
  • Columbus, Ohio is named Smart Cities Dive’s city of 2018
    December 5, 2018
    Columbus, Ohio has been named City of the Year in the Smart Cities Dive website’s awards for its work on transit and electrification. The US city won the US Department of Transportation’s inaugural Smart City Challenge two years ago – and is rolling out a variety of smart city-related programmes. Smart Cities Dive said the city’s “biggest area of progress this year” has been its increased reliance on electric vehicles (EVs), including in its bus fleet and other government vehicles. City authoritie
    Read More

Highlighted Content