The Largest Civil Monetary Penalties In Corporate FCPA Enforcement Actions
Disgorgement and prejudgment interest comprise the bulk of SEC recovery in corporate FCPA enforcement actions (typically 90% or so of overall recovery in most years).
However, in approximately 40% of corporate FCPA enforcement actions since 2010 the SEC has assessed a civil monetary penalty.
It is often a mystery (or at least not reasonably transparent) why most corporate FCPA enforcement actions by the SEC do not include a civil penalty, but some do.
In addition, it is often a mystery (or at least not reasonably transparent) how the civil penalties are actually calculated.
The Largest FCPA Enforcement Actions Involving Healthcare Related Companies
In large part due to the expansive FCPA enforcement theory that physicians, lab personnel and others associated with most foreign healthcare systems are “foreign officials” under the FCPA (first brought to the FCPA context in 2002 – see here for the prior post), healthcare related companies have resolved numerous FCPA enforcement actions.
This post highlights the twenty largest FCPA enforcement actions (as measured by settlement amount) involving healthcare related companies (broadly speaking pharmaceutical, medical device, life sciences, and diagnostic companies as well as those selling health related products).
The Percentage Of Corporate DOJ And SEC FCPA Enforcement Actions That Result From A Voluntary Disclosure
For at least 15 years the government has encouraged business organizations to voluntary disclosure conduct that may violate the Foreign Corrupt Practices Act.
But what do the numbers show? What percentage of DOJ and SEC enforcement actions are the result of a voluntary disclosure?
This post provides the answers.
Top 20 SEC Disgorgement Amounts In FCPA Enforcement Actions
The Foreign Corrupt Practices Act contains specific penalty provisions for both violations of the anti-bribery and books and records and internal control provisions. However, in the FCPA’s modern era there has been a dramatic shift by the SEC away from the FCPA’s statutory penalties in most corporate enforcement action towards disgorgement.
The 2004 FCPA enforcement action against ABB is believed to be the first FCPA enforcement in which the SEC sought a disgorgement remedy.
Since then, the SEC has secured approximately $5.4 billion in disgorgement (and associated pre-judgment interest) in approximately 160 corporate enforcement actions. Set forth below is the current top 20 list of SEC disgorgement (and associated pre-judgment interest) amounts.
The Percentage Of SEC FCPA Enforcement Actions That Also Involve A DOJ Component
The only category of actor that both the DOJ and SEC can bring a Foreign Corrupt Practices Act enforcement action against are “issuers” (the 78dd-1 portion of the FCPA).
The other two categories of actors covered by the FCPA, “domestic concerns” (78dd-2) and “persons other than issuers or domestic concerns” (78dd-3) are only subject to DOJ FCPA enforcement actions.
This post analyzes the percentage of SEC FCPA enforcement that also involve a DOJ component.