Companies that find themselves at the center of an investigation for potential violations of the Foreign Corrupt Practices Act have more to worry about than just an enforcement action. Increasingly, they must fend off shareholder class-action lawsuits based on FCPA allegations as well.
The FCPA itself does not provide for a private right of action, but that hasn’t kept shareholders from alleging violations of other laws and filing lawsuits in connection with an FCPA investigation or enforcement action. Many of the lawsuits also name the companies’ directors and senior officers as defendants.
