Siemens to pay $1.3b to settle corruption cases

Siemens has agreed to pay a combined $1.3 billion to settle the long-running corruption cases the company had been fighting in Germany and the US.

Under the settlements, Siemens will pay more than $800 million in fines to US authorities - $450 million to the justice department and $350 million to the US securities and exchange commission. The company will also lay out 395 million Euros ($533 million) to settle the German case.

Siemens has acknowledged that several of its executives had paid bribes in return for lucrative contracts.

According to the Associated Press, US prosecutors described to the court schemes during which the executives bribed foreign officials with suitcases stuffed with money. They also alleged Siemens had created vast slush funds to fund the corrupt activities.

Siemens announced in July that it intends to sue the conspirators - a group which allegedly consists of two former CEOs and nine other executive-level staffers - alleging their actions caused both financial damage and a loss of reputation to the company.

While the US justice department considers its case against the company itself resolved, the department has left open the possibility of filing future charges for the executives involved.

The $1.3 billion figure may seem high, but it was roughly in line with expectations - Siemens had already set aside $1 billion to fund the anticipated fines.