GLENDALE, Ariz., Feb. 6, 2017 /PRNewswire/ -- Following today's announcement of a settlement with the City of Chicago over its qui tam case, Redflex Traffic Systems®, Inc. (RTSI) has resolved all criminal and civil matters in the United States arising out of the Company's 2013 investigation into misconduct by former executives. RTSI is a wholly owned subsidiary of Redflex Holdings Group, which operates on five continents and in sixteen countries.
"Today marks a new beginning for Redflex," said RTSI President & CEO Michael Finn. "Over the last four years, we took the actions every responsible company would have chosen and enhanced our compliance management, training and oversight functions. We have been recognized for our efforts by our customers and the government, and emerged with a single-minded focus to provide innovative public safety solutions. Thanks to our resilient and remarkable employees, we are well-positioned for this new day."
Redflex is a public safety company, partnering with hundreds of state and municipal governments to save lives and reduce the costs associated with dangerous driving behaviors. Beyond photo traffic enforcement systems the Company's advanced technology also includes automatic license plate recognition, ticketless parking solutions and software to track unpaid tickets.
Under the terms of the settlement, Redflex will pay the City of Chicago $20 million, with $10 million payable by the end of 2017 and the balance to be paid, in various annual installments by the end of 2023, unless extended by the terms of the agreement. As a result of these provisions, Redflex remains financially strong, with over 150 existing contracts in communities across the Americas.
The settlement of the qui tam case follows last month's announcement by the United States Department of Justice (U.S. DOJ) of a Non-Prosecution Agreement (NPA) with RTSI. The NPA provides that the U.S. DOJ will not charge RTSI with any offense relating to the activities the Department was investigating in Chicago and locations in Ohio, provided the Company fully complies with the provisions of the NPA. The Company was not required to pay any fine or penalty to the U.S. DOJ, which noted in its public announcement that the Company had conducted an internal investigation, shared the results with the government, terminated the employment of those involved in wrongdoing, accepted responsibility for its conduct, and made early and extensive remedial efforts.
Redflex will continue to focus on developing innovative photo enforcement technology that saves lives and improves road safety. The company plans to drive revenue growth by increasing renewal rates, providing additional services and opening new markets. Redflex continues to produce positive cash flow.
About REDFLEX Traffic Systems, Inc.
Headquartered in Glendale, Arizona, RTSI makes and operates technology to deter red light running, speeding, passing stopped school buses, crossing railroad tracks while the alarm is active, running stop signs, unauthorized vehicles driving and stopping in bus lanes, speeding in highway work zones, stopping in an intersection during a red light and travelling in a crosswalk when a pedestrian is present. In addition, RTSI has technology to help prevent right angle crashes by red light runners before they ever occur, and to stop wrong-way drivers and alert other motorists when wrong-way drivers are headed their way. RTSI's suite of municipal services includes license plate tracking, ticketless parking solutions, and software to help municipalities track and collect unpaid city fines and fees.
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SOURCE Redflex Traffic Systems, Inc.