Bass, Berry & Sims attorneys Lindsey Fetzer and Thad McBride authored an article for Risk Management examining some of the more notable Foreign Corrupt Practices Act (FCPA) actions from this year and the lessons that can be learned from the outcomes. As the authors pointed out, “So far this year, the U.S. government has enforced the FCPA in a targeted but aggressive fashion, reaching resolutions with companies in various industries, including hospitality, medical devices, oil and gas, and telecommunications. While the number of enforcement actions has been relatively small, penalties have been significant compared to prior years.”
After examining four recent cases in detail, Lindsey and Thad offered the following key lessons that emerged from these recent enforcement actions:
- The actions underscore the importance of due diligence regarding third-party representatives.
- It is critical to ensure implementation of any remedial measures agreed to in a settlement or, more commonly, as part of a compliance audit or other review.
- Two of the cases offer a reminder that the SEC may impose penalties under the FCPA even when the DOJ does not do so.
- Companies need to take into account a DOJ pilot program announced in March 2023 that specifies that companies must try to claw back compensation from individual wrongdoers.
The full article, “Compliance Lessons from Recent FCPA Cases,” was published October 2 by Risk Management and is available online.