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The Many Issues To Consider From The Cognizant Technology Enforcement Action

By on February 19, 2019 in Cognizant Technology Solutions, DOJ FCPA Corporate Enforcement Policy, FCPA Investigative Costs, Gray Cloud, Investigative Fees, Permits / Licenses / Customs / Tax, Third Parties, Transparency
Issues

Previous posts here and here highlighted the recent Foreign Corrupt Practices Act enforcement action against Cognizant Technology Solutions and two of its former executives.

This post continues the analysis by highlighting several issues to consider.

Timeline

As highlighted in this prior post, Cognizant disclosed its FCPA scrutiny in a September 2016 SEC filing. Thus from start to finish, Cognizant’s FCPA scrutiny lasted approximately 2.5 years. While 2.5 years is shorter than recent medians of over 4 years (see here), 2.5 years is still too long for FCPA scrutiny to last.

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Wal-Mart’s Pre-Enforcement Action Professional Fees And Compliance Enhancements Top $900 Million

By on November 16, 2018 in Collateral Effects, FCPA Investigative Costs, Investigative Fees, Wal-Mart
Wal-Mart

In yesterday’s 3Q FY2019 earnings call presentation, Wal-Mart disclosed $9 million in Foreign Corrupt Practices Act and compliance related expenses ($6 million for ongoing investigations and inquiries and $3 million for global compliance program and organizational enhancements). The 3Q figures are higher than 2Q figures and 1Q figures.

Doing the math, Wal-Mart’s 3Q FY2019 FCPA and compliance-related costs are approximately $145,000 per working day.

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Checking In On Wal-Mart’s Pre-Enforcement Action Professional Fees And Compliance Enhancements

By on August 17, 2018 in FCPA Investigative Costs, Investigative Fees, Wal-Mart
Wal-Mart

In yesterday’s 2Q FY2019 earnings call presentation WalMart disclosed $8 million in Foreign Corrupt Practices Act and compliance related expenses ($5 million for ongoing investigations and inquiries and $3 million for global compliance program and organizational enhancements).

Doing the math, Wal-Mart’s 2Q FY2019 FCPA and compliance-related costs is approximately $130,000 per working day.

Over the past approximate 6 years, I have tracked Wal-Mart’s quarterly disclosed pre-enforcement action professional fees and expenses. While some pundits ridiculed me for doing so, it quickly caught on as the popular thing to do.

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The Many Issues To Consider From The Dun & Bradstreet Enforcement Action

By on April 25, 2018 in Dun & Bradstreet, FCPA Investigative Costs, Gray Cloud, Internal Controls, Investigative Fees, Kokesh, Statute of Limitations, Voluntary Disclosure
Issues

Some people simply read FCPA enforcement actions, accept the enforcement theories advanced, record the enforcement statistics, and go about their day.

Not here at FCPA Professor. Just because the FCPA is a fundamentally sound statute, does not mean that FCPA enforcement is necessarily fundamentally sound.

Prior posts here and here went in-depth into the SEC’s $9.2 million Foreign Corrupt Practices Act enforcement action against Dun & Bradstreet based on the conduct of two indirect Chinese subsidiaries from 6 – 12 years ago.

This post continues the analysis by highlighting the many troubling or notable issues to consider from the enforcement action.

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Roundup Of Scrutiny Alerts And Updates

By on March 2, 2018 in Albemarle Corp., Applied Energetics, Cognizant Technology Solutions, Exterran Corp, FCPA Investigative Costs, Fresenius Medical Care, Investigative Fees, Merger Issues, Monitor, Orthofix International, Stericycle, World Fuel Services
scrutiny alert

Add some to the list, take a few off, future settlement, continuing to seemingly “boil the ocean,” and monitor costs.

This time of year is heavy on annual reports and other corporate disclosures and this post rounds up various scrutiny alerts and updates.

Albemarle Corp.

The North Carolina based chemical company recently disclosed:

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