How much do corruption scandals actually hurt a company in the pocketbook, as in drop in profits? That question is often debated in the FCPA world as a stock dip when an FCPA investigation is eventually offset when the stock price rises. As counter-intuitive as it sounds, when a company settles an FCPA enforcement action, the stock price usually goes up because at least the costs are relatively well-known at that point.

Thomas Fox has practiced law for over 40 years. Tom writes the daily award-winning blog, the FCPA Compliance and Ethics blog and founded the Compliance Podcast Network. Tom leads the discussion on AI in...