Panasonic Corp.’s U.S. in-flight entertainment systems subsidiary is under investigation by the Department of Justice and Securities and Exchange Commission, the Japanese company said on Thursday.
Panasonic Avionics Corp. is being investigated by the authorities for allegedly violating the Foreign Corrupt Practices Act and securities laws, the Osaka-based company said in a statement. In a separate release, Panasonic said Chief Executive Officer Paul Margis left the company and was replaced by Hideo Nakano, formerly deputy CEO. The company also replaced the chief financial officer of the unit, and appointed a new chief operating officer.
The avionics company, founded in 1979, is a supplier of inflight entertainment and communication systems based in Lake Forest, Calif., and has more than 4,500 employees. Panasonic (IW 1000/54) said it is cooperating with authorities. The company doesn’t disclose earnings in the unit and said it’s evaluating the financial impact of the probe.
Separately, Panasonic raised its full-year profit and revenue forecasts citing weakening yen. The company increased its net income outlook 8.3% to 130 billion yen (US$1.2 billion) for the period ending March 31. Operating income will total 265 billion yen on 7.35 trillion yen in sales.
By Pavel Alpeyev