One area of law that has received enormous attention in the international business community the past several years is the Foreign Corrupt Practices Act. The sheer amount of FCPA material out there is staggering. Just Google "FCPA" and you'll see what I mean (over 1,200,000 results generated). For anyone trying to keep up with the latest FCPA developments, it can all … [Read more...]
Sovereign Debt Litigation on the Rise.
On Wednesday, the United States Court of Appeals for the Second Circuit will hear argument in a sovereign debt lawsuit that could have a major impact on world debt markets. The case centers on a group of investors who sued Argentina seeking payment for $1.3 billion relating to bonds that the country defaulted on in 2001. While the court has already sided with investors on … [Read more...]
Individual Liability for Foreign Subsidiary Misconduct. The Logical Next Step.
Yesterday's post centered on how important it is for U.S. companies to keep tabs on their foreign subsidiaries. Well, the Conglomerate blog has an excellent post on the increase of foreign subsidiaries that have entered guilty pleas with the U.S. government for misconduct that took place after the financial crisis. What's interesting about the rise in foreign subsidiaries … [Read more...]
Hey U.S. Corporations–Don't Neglect Your Foreign Subsidiaries!
I recently received an email from a board member of a corporation concerned that one of the company’s foreign subsidiaries was having compliance issues. I immediately interrupted and asked if there were any local bodies on the ground at the company’s foreign subsidiary. I wasn't exactly surprised to learn that there were not. In fact, no one from the U.S. office had visited … [Read more...]
SEC Takes Immediate Action in Freezing OffShore Accounts Tied to Heinz Insider-Trading.
Yesterday it was announced that Warren Buffet’s Berkshire Hathaway partnered with Brazilian equity fund 3G to purchase iconic American ketchup maker Heinz in a blockbuster $23 Billion deal. Just a day after the deal, the SEC obtained an emergency court order to freeze assets in a Zurich, Switzerland-based trading account that was used to reap more than $1.7 million from … [Read more...]