July 27, 2016
This previous post went in-depth regarding the $22 million parallel DOJ and SEC enforcement action against LAN Airlines.
This post continues the analysis of the enforcement action by highlighting additional issues to consider.
As noted in connection with the prior SEC enforcement action against Ignacio Cueto Plaza, the conduct at issue is notable for several reasons.
First, the problematic conduct was engaged in by an individual currently with the company. The vast majority of FCPA enforcement actions involve the conduct of former employees.
July 26, 2016
Five months ago, the SEC brought a Foreign Corrupt Practices Act enforcement action against Ignacio Cueto Plaza (“Cueto”), the Chilean CEO of Santiago, Chile based LAN Airlines S.A. (“LAN”) for authorizing payments in 2006 and 2007 to a third party consultant in Argentina in connection with LAN’s attempts to settle disputes on wages and other work conditions between LAN Argentina S.A. (“LAN Argentina”), a subsidiary of LAN, and its employees.
In short, the end result of an old labor dispute between a Chilean airline and Argentine workers is approximately $22 million flowing into the U.S. Treasury because LAN has shares that are traded on a U.S. exchange.
July 25, 2016
As highlighted in this prior post, in March 2015 a federal district court dismissed eight Wal-Mart shareholder derivative actions (consolidated into one) brought in the aftermath of the company’s FCPA scrutiny.
Last Friday in this opinion, the Eighth Circuit affirmed the dismissal.
Those who predicted that the Wal-Mart derivative actions would set a new standard for director liability were once again proven wrong (see here for the prior post).
July 22, 2016
Asset recovery, scrutiny alerts and updates, nominate, and for the reading stack. It’s all here in the Friday roundup.
FCPA enforcement is not the only prong of the DOJ’s bribery and corruption fight.
Asset recovery – part of the DOJ’s so-called Kleptocracy Initiative – is another prong and recently the DOJ announced its largest action ever brought under the program. As stated in this release:
FCPA Flash – A Conversation With Jonathan Pickworth Regarding The 5th Anniversary Of The U.K. Bribery Act
July 21, 2016
The FCPA Flash podcast provides in an audio format the same fresh, candid, and informed commentary about the Foreign Corrupt Practices Act and related topics as readers have come to expect from the written posts on FCPA Professor.
This FCPA Flash episode is a conversation with Jonathan Pickworth, a lawyer in the London office of White & Case. Pickworth and his colleagues at White & Case recently published a series titled “UK Bribery Act – 5 Lessons in 5 Years.”
In the episode, Pickworth discusses various aspects of the Bribery Act including the still lack of clarity regarding the so-called “failure to prevent bribery” offense as well as the “adequate procedures” defense. Pickworth also opines that the U.K.’s recently adopted deferred prosecution agreement regime is a step backwards in terms of motivating corporate self-reports.