Foreign Corrupt Practices Act Ripples

61 Pages Posted: 24 Apr 2018 Last revised: 12 Jul 2018

See all articles by Mike Koehler

Mike Koehler

Southern Illinois University School of Law

Multiple version iconThere are 2 versions of this paper

Date Written: 2014

Abstract

An obvious reason to comply with the Foreign Corrupt Practices Act ("FCPA") is that non-compliance can expose a company to a criminal or civil FCPA enforcement action by the Department of Justice ("DOJ") and/or the Securities and Exchange Commission ("SEC'). However, this Article highlights that settlement amounts in an actual FCPA enforcement action are often only a relatively minor component of the overall financial consequences that can result from FCPA scrutiny or enforcement in this new era.

By coining a new term of art - the "three buckets" of FCPA financial exposure - and through various case studies and examples, this Article demonstrates how FCPA scrutiny and enforcement can impact a company's business operations and strategy in a variety of ways from: pre and post-enforcement action professional fees and expenses; to market capitalization; to cost of capital; to merger and acquisition activity; to impeding or distracting a company from achieving other business objectives; to private shareholder litigation; to offensive use of the FCPA by a competitor or adversary to achieve a business objective or to further advance a litigating position.

Keywords: Foreign Corrupt Practices Act, FCPA, DOJ, Department of Justice, Three Buckets, Financial Exposure, Enforcement, SEC, Securities and Exchange Commission, Criminal, Civil, Business Operations

Suggested Citation

Koehler, Mike, Foreign Corrupt Practices Act Ripples (2014). American University Business Law Review, Vol. 3, No. 3, 391. Available at SSRN: https://ssrn.com/abstract=3156743

Mike Koehler (Contact Author)

Southern Illinois University School of Law ( email )

1150 Douglas Drive
Carbondale, IL 62901-6804
United States

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