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Episode 323 — Carlos Villagran Discusses Rebuilding a Corporate Culture After a Crisis

Carlos Villagrán is the Director of Compliance at CMPC, a 100 years’ old Chilean-based holding company, one of the worldwide leading manufacturers of pulp, paper, packaging, personal care and other forest products. Carlos discusses the challenges he faced in joining CMPC after a significant crisis — CMPC’s prosecution for antitrust cartel violations in Chile and Peru. With more than 20,000 employees, CMPC has industrial operations...

DXC Technology Company Settles Sanctions and Export Control Violations

On May 17, 2024, Nevada-based DXC Technology Company (“DXC”)—a global IT services provider—officially filed its required annual 10-K Form with the U.S. Securities and Exchange Commission (“SEC”) indicating that previously-disclosed proceedings involving both the U.S. Department of Commerce’s Bureau of Industry and Security (“BIS”) and U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) had been resolved. According to the SEC filing, DXC officially...

Congress Extends Sanctions Statute of Limitations And Addresses Other National Security Issues

On April 24, 2024, President Biden signed into law a sweeping national security legislative package that included the 21st Century Peace Through Strength Act, which includes measures to promote sanctions and export controls enforcement and focuses on China trade. The Act: The Act amends the statute of limitations for International Emergency Economic Powers Act (IEEPA) and the Trading with the Enemy Act (TWEA) to ten...

Aravo Webinar: Where Your Nth Party Liabilities Start and End

Where Your Nth Party Liabilities Start and End June 19, 2024, 11 am EST Sign Up Here Among the many challenges risk professionals face is understanding the true depth and breadth of their third-party risks. The scope and scale of assessing, managing, and mitigating third-party risk is constantly evolving, with increasing regulatory, shareholder, and market scrutiny, as well as increasing demands for transparency, auditability, and...

Life Sciences Company Escapes Criminal Charges for Employee’s Illegal Export Scheme

Sigma-Aldrich, Inc., d/b/a MilliporeSigma (“MilliporeSigma”), a U.S. life sciences company based in Massachusetts, escaped criminal charges for export control violations, despite a former sales person’s scheme to illegally export products to China.  DOJ cited the favorable resolution as proof of the National Security Division’s commitment to its voluntary disclosure program.  MilliporeSigma was the first company to resolve an investigation for export control violations under DOJ/NSD’s...

DOJ Antitrust Division Launches New Task Force on Health Care Monopolies and Collusion

DOJ Antitrust Division Launches New Task Force on Health Care Monopolies and Collusion

The U.S. Department of Justice’s Antitrust Division has intensified its scrutiny of healthcare platforms that integrate doctors with insurers, data, and other assets. Assistant Attorney General Jonathan Kanter described this trend as an “alarming” concentration of resources. In a significant move, the DOJ announced the establishment of the Task Force on Health Care Monopolies and Collusion. Kanter emphasized during a Washington Post Live event that...

Episode 322 — Checking in on the Caremark Cases

Episode 322 — Checking in on the Caremark Cases

Over the last ten years, we have seen a marked shift from the Delaware Chancery Court chipping away at corporate board member liability claims. In a number of seminal cases involving Boeing airplane crashes (In re the Boeing Co. Derivative Litig., No. 2019-0907 (Del. Ch. Sept 7, 2021)), and deadly listeria outbreaks from tainted ice cream (Marchand v. Barnhill, 212 A.3d 805 (Del. 2019)), Delaware...

The Magnificent Seven: Important Ways to Mitigate Your Third-Party Sanctions Risks (Part IV of IV)

The Magnificent Seven: Important Ways to Mitigate Your Third-Party Sanctions Risks (Part IV of IV)

It may seem like a Herculean task — but it can be done.  I regularly opine that mitigating sanctions risks for your third-party population is an easier task than doing so for your anti-corruption risks.  One big reason — geography is an important limiter on sanctions risks.  The ability to evade sanctions has to be financially practicable — for example, it makes no sense to...

Supply Chain and Sanctions Compliance (Part III of IV)

Supply Chain and Sanctions Compliance (Part III of IV)

While OFAC’s enforcement actions and guidance points to important steps exporters must take when relying on third-party distributors and other intermediaries, the “reason to know” and affirmative obligations to monitor resale and distribution of products to ultimate users does not appear to be unreasonable or impractical.  In terms of best practices, these are issues that need to be addressed. The supply chain and third-party risk...

Distribution Chains and Sanctions Compliance (Part II of IV)

Distribution Chains and Sanctions Compliance (Part II of IV)

Companies rely on robust distribution chains as an efficient mechanism to enter new markets without requiring a significant investment.  Additionally, companies may maintain parallel sales activities in markets between their own sales staff and third-party distributors, agents, resellers and dealers.  It is interesting how certain industries have evolved and relied on different models for use of third parties with the intent of reaching customers in...