Every so often it is interesting to go back into the archives and this post rewinds back ten years to Summer 2012.
Enjoy the trip down FCPA memory lane.
As highlighted here, Data Systems & Solutions LLC (“DS&S”), a wholly-owned subsidiary of Rolls Royce Holdings, resolved a DOJ FCPA enforcement action by agreeing to pay approximately $8.8 million. The conduct at issue concerned company business with an alleged state-owned nuclear power plant in Lithuania. (As highlighted here, in 2017 Rolls Royce resolved a $170 million FCPA enforcement action concerning conduct in Thailand, Brazil, Kazakhstan, Azerbaijan, Angola and Iraq).
As highlighted here, NORDAM Group. Inc. (a Tulsa, OK based privately held provider of aircraft maintenance, repair and overhaul services) resolved a $2 million FCPA enforcement action concerning conduct in China.
As highlighted here, Orthofix International resolved a $7.4 million FCPA enforcement action based primarily on the conduct of its wholly-owned Mexican subsidiary. (As highlighted here, in 2017 Orthofix joined the FCPA repeat offender club by resolving another FCPA enforcement action concerning conduct in Brazil).
As highlighted here, the dilution of FCPA enforcement seemingly reached a new level as the Oracle resolved a $2 million SEC FCPA enforcement action based on the conduct of an Indian subsidiary. The only allegations against Oracle itself is that it failed to audit distributor margins against end user prices and that it failed to audit third party payments made by distributors.
As highlighted here, Pfizer / Wyeth resolved a $60 million FCPA enforcement action concerning conduct in Bulgaria, China, Croatia, Czech Republic, Italy, Kazakhstan, Russia, and Serbia. (As highlighted here, Pfizer is currently under FCPA scrutiny concerning its operations in Russia and China).
It is interesting to compare corporate FCPA enforcement activity during the summer of 2012 (5 enforcement actions) to corporate FCPA enforcement activity during the summer of 2022 (currently 1 enforcement action).
It is further interesting to note that 3 of the 5 corporate entities involved in 2012 enforcement actions would subsequently have additional FCPA enforcement actions within its corporate structure or become the subject of additional FCPA scrutiny.
