Over the last eight years, FCPA litigation has increased. Companies are still avoiding the risks of litigation and losing to the Justice Department and the SEC. Individuals, on the other hand, have clear incentives to challenge DOJ’s FCPA interpretations, where appropriate, and they have done so. The Revised FCPA Guidance incorporates these new cases throughout the text and its numerous footnotes. The major additions include:...
In the dead of night, July 2, 2020, DOJ and the SEC issued the Second Edition of its FCPA Guidance (Here). A comparison of the First and Second Editions was released by Dick Cassin at The FCPA Blog, and is set forth here. Given the importance of the revised FCPA Guidance, we have scheduled a webinar for Tuesday, July 14, 2020 at 12 noon EST. ...
The Alexion Pharmaceutical SEC FCPA enforcement action represents another in the long line of enforcement actions against drug and device companies. The drug and device industries have been – and will continue to be — easy marks for prosecutors to investigate and prosecute for foreign bribery. There are a number of reason for this. First, global drug and device depend on interactions with foreign healthcare...
Notwithstanding the pandemic and remote working arrangements, the Securities and Exchange Commission is continuing to bring FCPA enforcement actions. In its latest action, the SEC settled with Alexion Pharmaceuticals for $21 million for foreign bribery and books and records violations. Alexion is a global pharmaceutical company. Its first drug, Soliris was approved to treat two ultra-rare diseases, paroxysmal nocturnal hemoglobinuria (“PNH”), which causes red blood...
In an important case decided in June 2020, the Supreme Court, in Liu et al v. SEC, addressed the SEC’s ability to seek “equitable relief” in civil proceedings. In 2017, the Supreme Court, in Kokesh v. SEC, ruled that a disgorgement order in an SEC action constitutes a “penalty” for purposes of application of the five-year statute of limitations. The Supreme Court left open the...
We have a new poster-child for a defective corporate culture of wrongdoing. Novartis has joined the exclusive club, along with Siemens, General Motors, Wells Fargo, and others in the misconduct Hall of Fame. Within the space of two weeks, Novartis has settled FCPA violations for foreign bribery, and just recently, Novartis settled two separate cases in the United States for anti-kickback and False Claims Act...
The Volkov Law Group wishes everyone a Happy Fourth of July!! Even in this turbulent and troubled times, we should share our gratitude for the sacrifices so many have made in the past to secure our freedoms, while recognizing that our work to build an even greater country continues. We hope that everyone — our clients, our colleagues, friends and family are staying safe and...
Companies are under enormous stress given the pandemic and the social unrest. Employees are looking to companies to provide some sense of stability and ultimately leadership. Corporate leaders are being tested and it is clear that in this defining moment, some will rise and some will fail. It is pretty obvious whether a CEO can meet this challenge. Perfunctory and happy-talk emails or positive messaging...
The Novartis and Alcon FCPA enforcement action is chock full of interesting issues. See Novartis DPA Here , Alcon DPA Here and SEC Novartis Order Here. At the outset, Novartis is “lucky” – the settlement is relatively positive, despite its 2016 SEC enforcement action in China. Given Novartis weak culture of compliance (if anything, a better description may be a culture of non-compliance) and its...
Novartis and Alcon engaged in separate but significant bribery schemes. Considering the fact that Novartis had a similar violation in 2016 in China involving much of the same conduct, Novartis’ conduct reflects a weak corporate culture of compliance. Novartis’ conduct is all the more troubling given its enforcement record on domestic False Claims Act and anti-kickback prosecutions. Novartis has real compliance and culture problems, apparently...
