SEC joins European probe of alleged misconduct at HP

REGULATORS

SEC joins probe of alleged bribery at HP

The Securities and Exchange Commission has joined an investigation by European regulators into allegations that technology giant Hewlett-Packard paid bribes to win business in Russia, according to the company.

HP said Thursday that the SEC had contacted the company and that it would cooperate with authorities.

The company said earlier this week that German and Russian officials were conducting an investigation into allegedly improper conduct from seven years ago, mainly involving former employees. The company said it is also undertaking an internal probe.

Federal probes of potential instances of foreign bribery -- which are illegal under the Foreign Corrupt Practices Act -- have been intensifying in recent years. The SEC and Justice Department have pursued several major cases targeting companies for attempting to bribe foreign government officials to gain business.

In the HP case, the Wall Street Journal reported this week that German prosecutors are probing whether HP executives paid nearly $11 million in bribes to win a $47 million contract to provide computer equipment for Russian prosecutors.

The Journal said that German authorities have arrested current and former HP employees in connection with the case, but none has been charged.

-- Zachary A. Goldfarb

CONSUMER SAFETY

Toyota suspends production of Lexus SUV

Toyota announced Thursday that it will suspend production of a Lexus sport-utility vehicle after Consumer Reports labeled the vehicle a "safety risk." Production of the Lexus GX 460 will stop from Friday to April 28, the company said.