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

  • TfL describes reports of closer ties with Uber as ‘nonsense’
    December 14, 2018
    Transport for London (TfL) has described claims that it is deepening its relationship with Uber as ‘nonsense’. Media reports suggested that London’s transit authority might be going to offer customers access to public transport services via the ride-hailing firm's app. The Financial Times reported that Uber is attempting to add TfL's data about tube and bus timetables into the app. But a spokesperson from TfL told ITS International that the only thing it is putting out is open data – and does no
    Read More
  • Lime launches free-floating car-share service in Seattle
    November 22, 2018
    Bike-share and electric scooter company Lime has launched a ‘free-floating’ car-share service in Seattle and intends to make 1,500 vehicles available in early 2019. Bloomberg says the company has deployed 50 Lime-branded vehicles and intends to increase this number to 500 by the end of the year. Users can unlock a LimePod vehicle, a customised two-door Fiat 500, via the company’s app for $1 and are charged 40 cents per minute while driving. Toby Sun, Lime’s chief executive officer, says the company is a
    Read More
  • Former US DoT boss says job was sometimes like ‘sitting over trapdoor’
    November 30, 2018
    The political pressure on transit organisations was starkly highlighted by the distinguished former boss of Michigan Department of Transportation at a UK conference this week. Kirk Steudle, who joined Econolite recently after a career in the public sector, said he often felt as though there was “a trapdoor under your seat” while he was in charge of state transportation. Talking about the development of ITS solutions at regional authority level, he said: “The ability to move forward is largely dependen
    Read More
  • Former US DoT boss says job was sometimes like ‘sitting over trapdoor’
    November 30, 2018
    The political pressure on transit organisations was starkly highlighted by the distinguished former boss of Michigan Department of Transportation at a UK conference this week. Kirk Steudle, who joined Econolite recently after a career in the public sector, said he often felt as though there was “a trapdoor under your seat” while he was in charge of state transportation. Talking about the development of ITS solutions at regional authority level, he said: “The ability to move forward is largely dependen
    Read More

Highlighted Content