In a story filed by Business Report, the US Department of Justice, as well as the US Securities and Exchange Commission, are taking a hard look at California-based Panasonic Avionics for alleged bribery and security law violations under the US Foreign Corrupt Practices Act.
This probe was confirmed on February 2 by the company's Osaka, Japan, parent company, who also stated they are cooperating with these US federal agencies.
CEO Paul Margis removed himself from Panasonic Avionics and was succeeded by Hideo Nakano, who was formerly the firm's deputy CEO. A new Chief Operating Officer has also been appointed by Panasonic. The company is among the top suppliers of IFE seat-back entertainment systems as well as WiFi comms systems for airlines and is considered to be the #2 supplier of such product, as of this writing.
The avionics company, founded in 1979, also develops and manufactures communications systems that include WiFi access for planes. Satellite operators have already sold impressive amounts of capacity to Panasonic Avionics and they include some of the largest names in the industry, such as Eutelsat, Intelsat, SES and Telesat. Plans were also underway by the firm with Yahsat to develop a satellite constellation that would provide comms for the Middle East.