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What: Shares of oil driller Hercules Offshore
So what: The story out of Hercules' corner today is anything but heroic. In an SEC filing yesterday, the company revealed that it is being investigated by the SEC and that the Department of Justice is also reviewing some of its activities. Hercules may have run afoul of the U.S.'s Foreign Corrupt Practices Act, which basically prevents companies from winning business abroad through bribes. The probe may be particularly notable considering the strength that Hercules has seen in its international division as business in the Gulf of Mexico has struggled.
Now what: Violations of the FCPA are hardly unheard of in the oil and gas industry. Just last November, Royal Dutch Shell
After a massive run in Hercules' stock that has seen it roughly triple since last fall, the drop today shouldn't be all that painful for all but the most recent buyers of the stock. However, with the extent of the violations still unknown, investors will want to watch this very closely.
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