Movie Studios Receive SEC Letters Of Inquiry About China Dealings: Reuters

The SEC has sent letters of inquiry to at least five movie studios in the past two months, including News Corp’s 20th Century Fox, Disney, and DreamWorks Animation, a person familiar with the matter said. The letters ask for information about potential inappropriate payments and how the companies dealt with certain government officials in China, said the person, who was not authorized to speak publicly about the letters…. The inquiry reflects stepped-up scrutiny from the SEC and Justice Department into potential violations of the Foreign Corrupt Practices Act, a 1970s law that bars U.S. companies and individuals from paying bribes to officials of foreign governments… Besides DreamWorks Animation’s plan to build a production studio in Shanghai, Disney announced last week that the next “Iron Man” film will be co-produced in China under a joint agreement between Disney, its Marvel Studios arm and China’s DMG Entertainment. Disney had also announced earlier this month that it would work with China’s Ministry of Culture and Tencent Holdings to promote the animation industry in China.