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Much Ado About…Little?

Wal-Mart

I didn’t come up with the headline, but I did participate in an extensive Q&A about Walmart’s FCPA scrutiny with Metropolitan Corporate Counsel. The Q&A was published in its most recent issue with the headline: “Much Ado About…Little? How a ‘garden variety’ FCPA investigation of Walmart grabbed the spotlight.”

The Q&A is republished below with permission.

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Friday Roundup

Roundup

Quotable, FCPA issues at City Hall, and for the reading stack. It’s all here in the Friday roundup.

Quotable

In this recent post titled “Judicial Scrutiny of Corporate Monitors: Additional Uncertainty for FCPA Settlements?” Debevoise attorneys Andrew Levine, Philip Rohlik and Michael Gramer note:

“Like many other complex corporate criminal matters, FCPA matters largely get resolved without meaningful judicial oversight. […] In complex cases, corporate criminal enforcement can follow the largely consensual process that has evolved in the FCPA arena.  After a long period of investigation, in which a company often cooperates, the company and DOJ negotiate a resolution, based on legal theories and facts largely determined by the DOJ.

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Unable To File Its Annual Report Due In Large Part To An FCPA Investigation, World Acceptance Corp. Stock Drops 12.4%

world accept

World Acceptance Corporation is a South Carolina based consumer finance company operating in 15 U.S. states and Mexico. It is also the parent company of ParaData Financial Systems, a provider of computer software solutions for the consumer finance industry.

Since late April, its stock price has been on a tear.

That ended yesterday as the company’s stock price fell approximately 12.4% upon disclosing that it would be unable to file its annual report due in large part to a Foreign Corrupt Practices Act investigation.

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FCPA Flash – A Conversation With Danforth Newcomb & Cynthia Urda Kassis Regarding “Transacting Business During a Corruption Investigation”

FCPA Flash

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 written posts on FCPA Professor.

This FCPA Flash episode is a conversation with Shearman & Sterling attorneys Danforth Newcomb and Cynthia Urda Kassis who recently authored an article titled “Transaction Business During a Corruption Investigation.”

During the podcast, Danforth and Cynthia discuss: (i) the origins of the article; (ii) what makes potential legal liability under the FCPA or similar laws different than potential legal liability under other laws; (iii) the gap between corporate FCPA enforcement and individual FCPA enforcement; and (iv) whether a recent DOJ statement that “FCPA investigations [should] be measured in months, not years” is believable.

FCPA Flash is sponsored by Kroll. Kroll is trusted by companies and compliance officers worldwide to help prevent, detect, and remediate FCPA challenges with scalable, end-to-end compliance solutions: from high-volume third party screening and automated monitoring, to risk-based due diligence, to complex investigations and monitorships.

The Hidden Employee Costs Of FCPA Scrutiny And Enforcement

fired

As highlighted in the article “FCPA Ripples,” settlement amounts in an actual Foreign Corrupt Practices Act enforcement action are often only a relatively minor component of the overall financial consequences that can result from FCPA scrutiny or enforcement. Other ripples include, most prominently, pre-enforcement action professional fees and expenses, post-enforcement action professional fees and expenses as well as a host of other negative business consequences.

As long as there has been FCPA enforcement, it has been known that culpable employees have been terminated or disciplined in connection with FCPA investigations and enforcement actions.

Yet, as highlighted in this post, in certain recent FCPA enforcement actions (but not all – the SQM and Las Vegas Sands enforcement actions were silent on this topic) the DOJ has quantified the number of employees terminated or disciplined. According to DOJ resolution documents, in six recent enforcement actions approximately 160 employees have been terminated or disciplined. (This figure is in addition to numerous third parties terminated by companies resolving FCPA enforcement actions).

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