Microsoft Corporation (MSFT) Facing Possible Bribery Charges In Hungary

Microsoft Corporation (NASDAQ:MSFT) is under investigation for potential wrongdoings overseas in which government officials may have received kickbacks to choose its software over rivals.

CNET has more details on the developing story:

US authorities are investigating Microsoft over potential bribery and corruption in connection with software sales in Hungary, The Wall Street Journal reported Thursday.

The Justice Department and Securities and Exchange Commission are investigating how Microsoft sold software such as Word and Excel at steep discounts to an intermediary in Hungary that then sold the products to government agencies in 2013 and 2014 at near full price, the Journal reported, citing unidentified sources familiar with the matter.

The investigation is looking at whether the price difference there was then funneled to government officials in the form of kickbacks.

For its part, Microsoft claims it took care of the issue a few years ago. “As soon as we became aware in 2014 of potential wrongdoing in our Hungarian subsidiary, we moved quickly to pursue a detailed investigation and hold people accountable. We fired four employees and terminated our business with four partners, and we’ve been defending ourselves against legal claims they raised as a result,” a Microsoft spokesman said.

Microsoft Corporation shares closed at $108.40 on Friday, up $0.84 (+0.78%). Year-to-date, MSFT has gained 28.36%, versus a 8.66% rise in the benchmark S&P 500 index during the same period.

MSFT currently has a StockNews.com POWR Rating of A (Strong Buy), and is ranked #1 of 68 stocks in the Software – Application category.