FCPA and Anti‑Corruption

On November 29, 2017, Cravath client SBM Offshore N.V. (“SBM”), a Netherlands-based provider of floating production solutions to the offshore energy industry, reached a settlement with the U.S. Department of Justice relating to legacy bribery issues in Brazil, Equatorial Guinea, Angola and elsewhere. The settlement includes a deferred prosecution agreement for the parent company, no monitorship, a guilty plea by SBM’s U.S. subsidiary and a financial sanction of $238 million. SBM received a substantial reduction in penalty based on its cooperation and remediation.

Cravath Leads FCPA Resolution with DOJ and SEC; Coordinates with International Counsel Team to Conclude Investigations Worldwide

On June 16, 2017, the Delaware Court of Chancery dismissed a stockholder derivative lawsuit brought against current and former directors and officers of Qualcomm Incorporated alleging, among other claims, that defendants breached their fiduciary duties by allegedly failing to prevent purported FCPA violations by the company. In granting the dismissal, Vice Chancellor Tamika R. Montgomery‑Reeves held that the complaint did not plead sufficient facts to infer that the individual defendants had acted in bad faith or that the directors faced a substantial likelihood of personal liability such that plaintiffs’ failure to make a demand on the board to bring a suit was excused.

On March 23, 2016, the SEC announced a settlement with Cravath client Novartis AG that ended an investigation concerning Novartis’s use of travel agencies in China. Pursuant to the settlement, Novartis agreed to pay $25 million to settle claims that it had violated the FCPA’s internal controls and books and records provisions, without admitting or denying the charges.

On December 17, 2014, Cravath client Avon Products, Inc. entered into a settlement with the U.S. Department of Justice and the Securities and Exchange Commission to resolve investigations of alleged FCPA violations involving Avon’s Chinese subsidiary. Cravath negotiated a deferred prosecution agreement on behalf of Avon Products and a guilty plea for Avon China, both of which related to the accounting provisions of the FCPA.

On August 1, 2023, Cravath partner Benjamin Gruenstein participated in “10 Years of the Corporate Anti‑Corruption Law,” an event co‑hosted by the United Nations Global Compact and Bazilian‑based law firm TozziniFreire Advogados in São Paulo, Brazil. Ben spoke on a panel entitled “The Evolution of the Corporate Anti‑Corruption Law in the International Scenario” about the development of Brazil’s Anti‑Corruption Law in the context of the United States’ enforcement of the Foreign Corrupt Practices Act.

On December 16, 2022, Global Investigations Review (“GIR”) published a profile of Cravath’s investigations practice in connection with the Firm’s inclusion in the “GIR 100”, a global guide to the world’s leading cross‑border investigations practices. The profile highlights the Firm’s experience with cross‑border cases, including recent representation of multi‑national pharmaceutical company Novartis and Swedish telecoms company Telia. GIR described Cravath partners Rachel G. Skaistis, John D. Buretta, Benjamin Gruenstein, David M. Stuart and Evan Norris as “top‑tier lawyers” in the space and noted the success of partners John W. White, Evan R. Chesler and Peter T. Barbur on client matters including FCPA, SEC and criminal investigations.

On November 30, 2022, Cravath partner John D. Buretta participated in the 39th annual International Conference on the Foreign Corrupt Practices Act, which was hosted by the American Conference Institute in Washington, D.C. from November 29 – December 1, 2022. John spoke on a panel entitled “Easing the Newest Concerns of the Board: What Needs to Be Addressed Moving Forward,” which examined effective board engagement on compliance matters and evolving liability risks for board members under the Caremark standard.

On April 7, 2022, Cravath partner Benjamin Gruenstein participated in the sixth annual Global Investigations Review Live DC Spring Conference. Ben spoke on a panel entitled “Cross-Border Issues – A Focus on China,” which discussed the Foreign Corrupt Practices Act (“FCPA”), export controls and compliance issues arising in China, and the potential impact of the U.S. Department of Justice’s decision to end the “China initiative.”

On February 22, 2022, Cravath was featured by Law360 as a “Compliance Practice Group of the Year.” The Firm was recognized for its experience with cross‑border cases, including recent representation of Swedish telecom company Telia and the global Department of Justice monitorship of Japanese auto parts company Takata Corporation and Department of Transportation monitorship of Takata and 19 affected automakers.