How Would You Pay for an FCPA Lawsuit?

Think your company won’t get charged with Foreign Corrupt Practices Act violations? You might want to plan for it all the same. From the law firm of Gilbert LLP: 

“In an era of high profile Wall Street prosecutions and shareholder derivative suits, the phrase ‘Foreign Corruption Practices Act’ surely should have corporate officers and executives deeply concerned and vigilant. Not so, according to a new survey in which 80% of public company executives and their directors said that it was unlikely they would be sued this year. This lack of concern is despite the fact that 25% of those same surveyed companies have already been sued, and that 2011 brought a record number of settlements for FCPA violations as well as a record number of enforcement actions against non-US individuals charged in the U.S. …

There are five strategies every director and executive should know about insurance and other risk-transfer instruments to protect their companies before, during, and after an FCPA investigation or related lawsuit. Ultimately, protection lies in the right business and insurance approach, and these five strategies can help lead executives in in the best ways to mitigate the financial consequences of the risks of FCPA investigations and related lawsuits.”

Read the update, The FCPA and Insurance Coverage: Five Strategies for Protecting Against the Financial Costs of an FCPA Claim - Gilbert LLP»