Embraer in Talks With DOJ

SÃO PAULO—Brazilian aircraft manufacturer Embraer SA said that it started discussions with the U.S. Justice Department, for a possible resolution of alleged noncompliance with the U.S. Foreign Corrupt Practices Act.

The FCPA allegations are the object of a confidential internal investigation as previously disclosed, according to Embraer.

"A resolution would result in fines and possibly other sanctions and adverse consequences. We are unable to estimate the duration or outcome of the discussions with the DOJ," Embraer said in a statement.

Embraer disclosed in 2011 that it was under investigation in the U.S. for possible violations of the FCPA, an anticorruption law. The company, however, didn't unveil details of the cases under investigation.

In September, The Wall Street Journal reported that Brazilian authorities had filed a criminal action against eight Embraer SA employees, accusing them of bribing officials in the Dominican Republic in return for a $92 million contract to provide the country's armed forces with attack planes.

The criminal complaint, filed under seal and reviewed by The Wall Street Journal, marked one of the first known efforts by Brazil to prosecute its citizens for allegedly paying bribes abroad, a milestone achieved with help from the Justice department and the Securities and Exchange Commission.

"The U.S. government inquiries, related inquiries and developments and our own internal investigation are continuing. We will continue to cooperate with the DOJ and any other governmental authorities, as circumstances may require," said the Brazilian company.

The U.S. agencies also are investigating the company's dealings in the Dominican Republic and elsewhere and have provided their Brazilian counterparts with evidence, according to a request last year for legal assistance from Brazilian prosecutors.

Embraer, one of Brazil's highest-profile companies, is the world's third-largest commercial-aircraft manufacturer by sales and employs more than 18,000 people at its plants in Brazil, China, Portugal, France and the U.S.

Write to Rogerio Jelmayer at [e-mail]

Subscribe to WSJ: http://online.wsj.com?mod=djnwires