Issues To Consider From The AstraZeneca Enforcement Action
This post summarized the recent SEC Foreign Corrupt Practices Act enforcement action against AstraZeneca in which the company, without admitting or denying the SEC’s findings, agreed to cough up $5.5 million.
This post continues the analysis by highlighting additional issues to consider.
Timeline
In an August 9, 2010 filing, AstraZeneca first disclosed:
“AstraZeneca PLC has received inquiries from the US Department of Justice and the Securities and Exchange Commission in connection with an investigation into Foreign Corrupt Practices Act issues in the pharmaceutical industry. AstraZeneca is cooperating with their inquiries.”
Thus from start to finish, AstraZeneca’s FCPA scrutiny lasted over six years.
It is absolutely inexcusable on any level for FCPA scrutiny to last over six years. If the SEC wants the public to view its FCPA enforcement program as legitimate, credible, and effective, it must resolve instances of FCPA scrutiny much faster.
Issues To Consider From The Key Energy Enforcement Action
This prior post summarized the recent Foreign Corrupt Practices Act enforcement action against Key Energy Services. This post continues the analysis by highlighting additional issues to consider.
Pre-Enforcement Action Professional Fees and Expenses
As highlighted in “FCPA Ripples,” settlement amounts in an actual FCPA enforcement action are often only a relatively minor component of the overall financial consequences that can result from FCPA scrutiny or enforcement in this new era.
According to Key Energy’s 10-K filed in February 2015, the company had “legal expenses related to the FCPA investigation of $41.1 million.” Key Energy’s 10-K filed in February 2016 did not mention a specific figure, but merely stated that there “lower expenses related to our FCPA investigations compared to the prior year.”
Issues To Consider From The LAN Airlines Enforcement Action
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.
Defiant
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.
Issues To Consider From The Johnson Controls Enforcement Action
Prior posts here and here concerned the Foreign Corrupt Practices Act enforcement action earlier this week against Johnson Controls (JCI). This post continues the analysis by highlighting additional issues to consider.
Timeline
According to the SEC’s Order “JCI self-reported the potential FCPA violations to the SEC staff and DOJ in June 2013.” Thus, from start to finish JCI’s FCPA scrutiny lasted 3 years and 1 month.
If the DOJ/SEC want the public to have confidence in their FCPA enforcement programs, they must resolve instances of FCPA scrutiny much quicker.
Issues To Consider From The Analogic Enforcement Action
This previous post went in-depth regarding last week’s $14.9 million Foreign Corrupt Practices Act enforcement action against Analogic Corp. and a related entity.
This post continues the analysis by highlighting various issues to consider.
Sparse Allegations
Rarely has an SEC enforcement action against an issuer contained such few allegations against, well, the issuer.