Top Menu

Ericsson’s $97 Million Ripple

Ripple

Foreign Corrupt Practices Act settlement amounts are one obvious consequence of FCPA non-compliance and tend to generate the most headlines.

However, as has been discussed on these pages for years  including in this article “FCPA Ripples”, settlement amounts are only one consequence of the overall financial ramifications of FCPA scrutiny and enforcement.

As highlighted in this prior post, in late 2019 Swedish telecom company Ericsson (a company with American Depositary Shares traded in the U.S.) resolved a $1.06 billion net FCPA enforcement action concerning conduct in Djibouti, China, Vietnam, Kuwait, Indonesia, and Saudi Arabia.

Continue Reading

SQM’s $62.5 Million Ripple

Ripple

Foreign Corrupt Practices Act settlement amounts are one obvious consequence of FCPA non-compliance and tend to generate the most headlines. However, as has been discussed on these pages for years  including in this article “FCPA Ripples”, settlement amounts tend to be a relatively modest consequence of the overall financial ramifications of FCPA scrutiny and enforcement.

Pre-enforcement action professional fees and expenses are often 3-5 times (and sometimes higher) the actual FCPA settlement amount and post-enforcement action professional fees and expenses quickly add up as well.

In addition, many instances of FCPA scrutiny result in shareholder litigation – whether a derivative action against officers and directors for alleged breaches of fiduciary duty and/or a securities fraud action.

Continue Reading

From The Dockets

Judicial Decision

This post summarizes a strange state law claim filed by a former Walmart attorney and recent decision by a federal court judge concluding that resolving a Foreign Corrupt Practices Act enforcement action through a deferred prosecution agreement does not constitute a conviction.

Walmart Matter

Recently Shane Perry (a former Walmart attorney who worked on Walmart’s internal FCPA investigation in Mexico in 2011 and later became the Ethics Officer for Walmart de Mexico) filed this lawsuit in Arkansas state court claiming that on July 6, 2017 “he was terminated in a ruthless fashion based on information carelessly gathered and processed at the orders of senior management for punishment and retaliation.”

Continue Reading

Powered by WordPress. Designed by WooThemes