Are you in compliance?

Don't miss out! Sign up today for our weekly newsletters and stay abreast of important GRC-related information and news.


Status message

Start your free, no obligation 5-day trial to continue exploring with full access.

Facing an FCPA Probe? Prepare for Follow-On Litigation

Joe Mont | May 20, 2014

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.
FCPA-related lawsuits typically take two forms: securities fraud class actions and derivative actions brought against the company's directors or officers for alleged breaches of fiduciary duty. Typically the class-action cases allege that the company made false or misleading statements, or failed to disclose material information regarding the nature and scope of the company's FCPA...

Read this single article for $49, or click the subscribe button below to review subscription options.

Enjoy unlimited access to thousands of articles, browse five years of digital magazines, qualify for reduced admission to events, and more.