The increase in liability stemming from enforcement under the Foreign Corrupt Practices Act (FCPA) implies that boards serving multinational companies have even more to be concerned about, said Lorie Almon. Greater FCPA enforcement has resulted in criminal investigations against some directors. “Which is why you, as directors, need to be mindful of the risks in place that exist in the jurisdictions where your companies have operations” and how management is staying abreast of changes in the legal system both here and abroad, advised David Hennes.
Left to Right: David Kistenbroker, David B. Hennes, Lorie Almon and Benjamin W. Heineman
Kistenbroker warned that follow-on litigation from FCPA investigations by governmental entities “has spawned an increase in civil action. This is of significance given the new whistleblower provisions being sanctioned by the SEC.” The statue of limitations, Almon said, are “extraordinarily long. [Whistleblowers] can reach back ten years.”
There is a spot of good news on the litigation front, however. Said Hennes: “If you look at the statistics, securities class action cases are on the decline.”
Moderator:
Benjamin W. Heineman, former general counsel of General Electric
Panelists:
Lorie Almon, co-managing partner, New York office, Seyfarth Shaw
David B. Hennes, partner, Fried, Frank Harris
David Kistenbroker, managing partner, Katten Muchin Rosenman