The Law Offices of Daniel J. Hurson, LLC
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FCPA INVESTIGATIONS KEEP COMING

Qualified/Selective Representation

It seems that each week brings the announcement of another FCPA investigation being conducted by the SEC or DOJ. This week Alere Inc., a diagnostics test maker, said in an SEC filing that it had received a grand jury subpoena from the DOJ for documents relating to its sales practices on multiple continents. Alere's filed 8-K relating to such sales practices and "other matter related to the U.S. Foreign Corrupt Practices Act." I will bet the subpoena said a lot more than that but the lawyers figured that was enough disclosure for now. Nice though that they made any disclosure at all--some lawyers continue to think that a subpoena does not deserve an 8-K until it ripens into an enforcement action or an indictment. The company also said it would delay filing its annual report because of revenue recognition issues, so lots of apparent problems there.

The SEC has been saying repeatedly this year that it has many FCPA cases in the pipeline, some coming from whistleblowers. I continue to think this is a very fertile fiield which has not been tilled much by whistleblowers. See my recent article, published by Mondaq, regarding the opportunities for whistleblowers in the FCPA area (see Publications). The great thing about FCPA cases that the targets are often multi-national companies who can pay large penalties, usually over the $1 million threashold needed to get a whistleblower award. They also pay up shortly after the Order is entered. But the cases do take awhile to develop, so don't spend the money yet, and don't quit your day job (unless maybe it's with the company you are whistleblowing about).