Preparing for Shareholder Lawsuits When Dealing with Foreign Corrupt Practices Act Investigations
By SAMUEL W. COOPER, S. JOY DOWDLE, & CHRISTIE A. MATHIS
In an environment of continued focus by regulators on enforcing the Foreign Corrupt Practices Act, shareholder litigation related to FCPA investigations is almost routine. It is often the case that even announcing an FCPA investigation can draw collateral civil actions. While every anti-corruption investigation has unique characteristics, requiring a carefully tailored approach, the crafting of that approach is best undertaken with an understanding of how shareholder litigation might unfold. Awareness of how investigation decisions, such as disclosure, the waiver of privilege, and the content of resolution papers, impact collateral civil litigation creates the prospect for better management and resolution of FCPA related shareholder suits.