Category: fcpa

French whistleblowers get new legal protections

As of 1 February, the new French whistleblower protection law is in effect. Its provisions protects French employees of private companies from sanction or dismissal “for having reported or testified in good faith, facts constituting an offense or a crime of which he was aware in the exercise of its functions”. A similar provision took […]

Collateral bribery damages: NYC now 3rd fund to file suit v. Wal-Mart.

In another of what will likely be many such lawsuits by pension funds, New York City Pension Funds filed a shareholder derivative action against Wal-Mart over the bribery and corruption scandal involving Wal-Mart’s Mexican subsidiary, Wal-Mex. This follows the California State Teachers retirement systems’s similar filing in late May. The New York City complaint similarly alleges that Wal-Mart’s […]

Donald Trump on bribery scandals: US “crazy” to enforce FCPA.

On CNBC’s Squawk Box, tycoon, occasional presidential candidate, Reality TV star and bottled water purveyor Donald Trump was asked about Wal-Mart’s allegedly widespread bribery in Mexico. Having obviously thought through the arguments for and against FCPA reform, he provided the following insights: If you want to operate in Mexico, you have to pay bribes. This is […]

NGO on FCPA reform: fines should compensate victims.

The SERAP (Socio-Economic Rights and Accountability Project) has added its voice to the calls for FCPA reform. In a press release, the Nigerian NGO proposes that the US DOJ and SEC allocate a percentage of funds from fines exacted on corporations to aide the actual victims of corrupt government officials and agencies. SERAP argues that since […]

US DOJ brings in FBI to investigate News Corp bribes to Scotland Yard.

When details emerged last July that employees of News International (the press arm of News Corp) had possibly bribed 5 Scotland Yard police officers, the FCPA red alert must surely have sounded in News Corp’s legal department. Since then, News has brought in a number of heavy hitters to cover them, including immediately hiring Mark Mendelsohn from Paul […]

$16.8M fine for European device maker in FCPA settlement.

        The US DOJ announced today that Smith & Nephew has admitted to and settled claims related to an offshore kickback scheme with a Greek distributor. Smith & Nephew also settled today with the US SEC, paying $5.4 million in disgorgement of profits, including interest. This is one more in a line of FCPA cases where the […]

When can an individual sue a corporation for corrupt practices?

When a company’s stock price dives or its reputation is besmirched due to a criminal investigation, what action can affected individuals or shareholders take to seek compensation? What about whistleblowers who suffer retaliation? While the US Congress is considering legislation to allow private parties to seek compensation for damages (Foreign Business Bribery Prohibition Act of 2011), there is currently no statutory provision that […]

Cinergy FCPA case: It takes ‘guts’ to make this argument.

In the ongoing FCPA case related to Cinergy’s alleged bribery of Haitian officials, their lawyer is planning to bring in Prof. Edgardo Rotman of the University of Miami Law School to make the argument that the DOJ, in enforcing the FCPA, is “denying the realities of the world” and that certain business cultures apparently require bribery […]

DOJ leverages Sempra’s lawyers’ work in FCPA case.

I’m not sure if we need to be really worried about this. Is it truly wrong for the DOJ to work with a company’s lawyers to figure out if there was a violation of the FCPA? My sense is that Sempra wanted to cooperate and the DOJ probably came to an agreement with them once […]