• |

    Oct. 9, 2024

The New New Foreign Extortion Prevention Act

Less than a year since the Foreign Extortion Prevention Act (FEPA) was enacted, Congress – in an increasingly rare showing of bipartisan support and in an impressively short period of time – repealed and replaced it with the Foreign Extortion Prevention Technical Corrections Act. The Anti-Corruption Report interviewed practitioners in the field for their assessment of the new law’s significance, take on who benefits from these most recent changes, and suggestions as to whether and to what extent the regulated community might want to update practices. See “Newly Signed Foreign Extortion Prevention Act Complements FCPA” (Jan. 3, 2024).

How to Survive - and Even Thrive - Under a DPA

Deferred prosecution agreements (DPAs) are typically preferable to guilty pleas when resolving a corporate criminal investigation, but they come with significant compliance and reporting requirements. In this article, Marc Hennes, Head of Legal Investigations, and Brett Hudson, International Head of Ethics, Risk & Compliance, both at Novartis, along with James Koukios, a partner at Morrison Foerster, reflect on their experiences having been part of the team that worked to ensure compliance with the company’s 2020 DPA. They provide concrete takeaways from three years of compliance enhancements, annual reports and government oversight, as well as the institutional ingredients that make the compliance gains meaningful and lasting. See “Klaus Moosmayer of Novartis Explains Why Holistic Risk Assurance Is the Future of Compliance” (Jun. 23, 2021).

Securities Fraud Action Based on Ericsson’s FCPA Settlement Breach Dismissed

Guilty pleas and regulatory settlements often trigger follow-on private litigation. Courts have often taken a broad interpretation of what can constitute securities fraud, allowing these cases to move forward through the motion to dismiss stage, costing companies dearly in both money and reputational harm. The breach by Telefonaktiebolaget LM Ericsson of its 2019 deferred prosecution agreement lead almost immediately to one such securities fraud case, but the company was able to nip this particular suit in the bud early. In May 2023, the District Court dismissed the action with prejudice. On September 3, 2024, the U.S. Court of Appeals for the Second Circuit affirmed the District Court’s decision. This article discusses the circumstances giving rise to the action, plaintiffs’ allegations and reasoning behind the dismissal. See “Lessons From the Dismissal of the Embraer Securities Fraud Class Action” (May 2, 2018).

Answers to Six Key Questions About How Enforcers View Gatekeepers

The SEC and DOJ often speak about their commitment to holding individuals accountable for corporate wrongdoing. One way in which they uphold this principle is by focusing on company gatekeepers – those with unique access to knowledge who are in the best position to prevent, detect and mitigate issues. A recent program hosted by the Practising Law Institute dove deep into corporate gatekeepers and their possible liability for corporate crime. This article draws insights from two separate panels at the program to answer six fundamental questions about gatekeepers. See “Former SEC Officials Discuss Aggressive Enforcement Climate” (Oct. 25, 2023).

FTC Signals Stricter Children’s Enforcement in NGL Labs Settlement: Key Violations and Settlement Terms

The Federal Trade Commission (FTC) introduced a novel ban on offering an online service to children and teens under 18 years old when it announced its settlement with California-based app developer NGL Labs and two of its co‑founders. NGL, short for “not gonna lie,” is an app that enables its users to receive anonymous messages. The settlement showcases the FTC’s willingness to use the Children’s Online Privacy Protection Act and other federal laws to protect teens as well as younger children. This first article in a two-part series on the significant aspects of the case examines the key violations and settlement terms as well as what the resolution signals about the FTC’s children’s privacy enforcement. It includes insights from Covington, Hunton Andrews Kurth, Orrick and ZwillGen. Part two will cover other novel aspects of the case, enforcement coordination trends and compliance lessons. See our two-part series on the SolarWinds Decision: “Court Narrows Case, but SEC’s Surviving Claims Alarm CISOs” (Aug. 28, 2024), and “Practical Takeaways for Cyber Communications” (Sep. 11, 2024).

Most-Read Articles

Spotlight on Trailblazing Women

To mark International Women’s Day 2024, women editors and reporters of ION Analytics interviewed outstanding women in the industries and jurisdictions we cover. In this part, Jill Abitbol, Managing Editor of the Cybersecurity Law Report and Anti-Corruption Report, features notable women in data privacy, cybersecurity, white collar defense, compliance and anti-corruption law, including Christina Montgomery, Leslie Shanklin, Palmina Fava, Alexandra Ross and Lucinda Low. Enjoy reading their inspiring remarks here.