Not a Lexis+ subscriber? Try it out for free.

Securities

FCPA Settlement Day

Today, in what the FCPA Blog called "making FCPA history", the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) announced the agreement by the Global logistics firm Panalpina and the energy companies Shell, Transocean, Tidewater, Noble and Pride International to resolve various outstanding FCPA charges. The total amount of penalties is $156.565 million in criminal fines and about $73.9 million in civil disgorgement, interest and penalties.

  SETTLEMENT BOX SCORE

Entity

Criminal Fine

Profit

Disgorgement

DPA or NPA

Outside

Monitor

Panalpina

$70.56MM

$11.3MM

DPA

No

Shell

$30MM

$18.1MM

DPA

No

Transocean

$13.44MM

$7.2MM

DPA

No

Pride Int'l

$32.625MM

$23.5MM

DPA

No

Tidewater

$7.35MM

$8.3MM

DPA

No

Noble

$2.59MM

$5.5MM

NPA

No

Total

$156.565MM

$73.9

 

 

In addition to the total amount going to the US Treasury of approximately $229.5, the most interesting item noted is that none of the parties was required to have a corporate monitor as a part of its settlement. In future posts we will review the specific Deferred Prosecution Agreements (or Non-Prosecution Agreement) to see if we might glean some of the DOJ's concepts of current FCPA compliance best practices.

Download the DPA for Panalpina here, Shell here, Tidewater here, Pride here, Transocean here, and the NPA for Noble here.

Visit the FCPA Compliance and Ethics Blog, hosted by Thomas Fox, for more commentary on FCPA compliance, indemnities and other forms of risk management for a worldwide energy practice, tax issues faced by multi-national US companies, insurance coverage issues and protection of trade secrets.

This publication contains general information only and is based on the experiences and research of the author. The author is not, by means of this publication, rendering business, legal advice, or other professional advice or services. This publication is not a substitute for such legal advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified legal advisor. The author, his affiliates, and related entities shall not be responsible for any loss sustained by any person or entity that relies on this publication. The Author gives his permission to link, post, distribute, or reference this article for any lawful purpose, provided attribution is made to the author. The author can be reached at tfox@tfoxlaw.com.

© Thomas R. Fox, 2010