Featured Articles:

Supreme Court Restricts Disgorgement Remedy

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...

Novartis Settles False Claims Act Cases and Pays $729 Million for Domestic Bribery Schemes

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...

Episode 149 — A Deep Dive into the Alexion’s SEC Settlement for $21 Million for FCPA Violations

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.  In this Episode, Michael Volkov reviews the Alexion FCPA enforcement action and the lessons learned for compliance professionals.

Happy 4th of July!

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...

Corporate Culture: Health and Safety (Part II of II)

Companies face a daunting challenge to reassure and regain trust and integrity with employees.  CEOs should view the current situation as an opportunity to improve a company’s culture by building on the company’s trust and integrity values. Aside from basic economic questions, companies have to ensure that employee health and safety are assured.  In this pandemic era and with the spread of disinformation by politicians,...

Corporate Culture: Leadership (Part I of II)

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...

Novartis and Alcon FCPA Enforcement Action: Lessons Learned (Part III of III)

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: A Review of Bribery and Accounting Violations (Part II of III)

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...

Novartis and Alcon Settle FCPA Violations for $345 Million (Part I of III)

Even during this difficult time of the pandemic, economic uncertainty and social unrest, the Justice Department and the SEC have concluded a major FCPA enforcement action.  Novartis and Alcon (which was a Novartis subsidiary at the time of the misconduct) agreed to pay a total of $345 million in criminal and civil penalties.  Novartis spun off Alcon in 2019. Under the DOJ settlement, Novartis and...

Episode 148 — A Review of the Novartis & Alcon FCPA Enforcement Action

Even during this difficult time of the pandemic, economic uncertainty and social unrest, the Justice Department and the SEC have concluded a major FCPA enforcement action.  Novartis and Alcon (which was a Novartis subsidiary at the time of the misconduct) agreed to pay a total of $345 million in criminal and civil penalties.  Novartis spun off Alcon in 2019. Under the DOJ settlement, Novartis and...