Extreme Networks Reaches DOJ Nonprosecution Agreement
The company will pay nearly $1 million to resolve allegations of illegal sales to a sanctioned Russian weapons maker.
Updated on Oct. 28, 2026 in Financial Crime
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Extreme Networks Inc. has entered into a nonprosecution agreement with the Department of Justice to settle claims regarding unlawful transactions. The company agreed to pay $975,722 in penalties as part of the resolution.
Why it matters
This agreement resolves allegations that the company sold products to a sanctioned Russian entity, marking a significant federal enforcement action. It represents the first near-miss nonprosecution agreement finalized under a recent corporate disclosure policy.
Extreme Networks Inc. agreed to pay $975,722 to settle federal allegations. The agreement follows the Department of Justice's new corporate disclosure policy, marking the first time such a resolution has been finalized as a near-miss agreement.
The players
Extreme Networks Inc.
A networking company that provides cloud-driven solutions and was accused of violating sanctions by selling to a Russian weapons manufacturer.
Department of Justice
The federal executive department responsible for enforcing U.S. laws and administering justice in this case.
The details
The settlement follows allegations that Extreme Networks Inc. sold technology products to a weapons manufacturer operating in Russia. The nonprosecution agreement ensures the company avoids criminal charges by accepting the financial penalty.
Timeline
October 27, 2026: The Department of Justice announced the nonprosecution agreement.
Legal Context
This settlement follows the precedent set by the Department of Justice's new corporate disclosure policy regarding near-miss agreements. It marks the first time a company has utilized this specific provision to avoid prosecution.
The settlement requires the company to address its compliance failures, potentially leading to more rigorous oversight of international sales. This action serves as a warning to domestic firms regarding the risks of doing business with sanctioned entities.
The takeaway
Companies must strictly verify their international supply chains to avoid violations of federal sanction programs. Proactive disclosure remains a critical mechanism for corporations seeking to mitigate severe legal penalties during federal investigations.
Further reading
For more on federal enforcement efforts, see Financial Crime.
Source note: This article includes information reported by Law360.
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