Advice for Entrepreneurs, Mergers and Acquisitions
FCPA Liability in M&A
I am currently advising a client on making an acquisition in Asia. I happened upon this article in Forbes, and found it timely. Enjoy!
Protecting Your Corporation Against FCPA Liability in Mergers & Acquisitions
By Ben Kerschberg
Forbes Online/Law & Technology
March 28, 2011
The Foreign Corrupt Practices Act (“FCPA”) prohibits U.S. companies and citizens, foreign companies listed on a U.S. stock exchange, or any person acting while in the United States, from corruptly paying or offering to pay, directly or indirectly, money or anything of value to a foreign official to obtain or retain business. The FCPA is jointly enforced by the Department of Justice (“DOJ”) and the Securities Exchange Commission (“SEC”). As I recently wrote, both agencies are enforcing the statute much more stringently than in the past, including through litigation strategies based on strict liability as a standard by which corporate officers can be judged for overseeing bribery schemes. The DOJ has collected a record $450 million and $400 million fines against two companies, and record numbers of individuals have been indicted on corruption-related charges since 2009, a number that skyrocketed in 2010.
HOW THE FCPA RELATES TO MERGERS & ACQUISITIONS
The DOJ’s and SEC’s more stringent enforcement of the FCPA has important implications for mergers and acquisitions. the acquirer. Click here for the full article: http://blogs.forbes.com/benkerschberg/2011/03/28/protecting-your-corporation-against-fcpa-liability-in-mergers-acquisitions/
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