FCPA Other Penalties / Sanctions


Other government penalties that apply are:

  • Suspension or debarment from securing contracts with the government.
  • An indictment can lead to suspension.
  • The suspension or debarment of a business by one government agency disqualifies it from contracting with any other government agency.

 

Private lawsuits

  • No private rights of action.
  • Securities class actions or shareholder derivative suits.
  • Lawsuits based on antitrust laws and common law prohibitions due to contract and unjust competition.


In the News

“The total fines of $44 million imposed against Baker Hughes and its subsidiariesFirst, the DoJ and the SEC have developed a practice of targeting specific industries, through an industry-wide investigation.

Second, the authorities have targeted companies doing business in countries where bribery is part of the local business culture.

Third, the U.S. authorities have shown an increased willingness to cooperate with foreign governments in joint investigations

Fourth, increased M & A activity has led to the discovery and disclosure to the authorities of a number of FCPA violations

the entry of Delta & Pine into a $300,000 FCPA settlement following its merger with Monsanto (refer here) and York International’s FCPA settlement following its merger with Johnson Controls, whereby York agreed (here) to a $10 million criminal penalty, a $2 million civil penalty, and the disgorgement of $10 million profit.”

Source: D&O Diary

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