Thursday, February 16, 2012
The Wall Street Journal editorial page weighs in on FCPA prosecutions here this morning, bewailing DOJ's increasingly broad construction of the statute and calling for reform. The editorial hits the FCPA nail right on the head, noting Mother Justice's recent setbacks in three FCPA cases, but also noting that big companies settle FCPA cases for outrageously large sums instead of shouldering the risks and further financial burdens of protracted litigation against the DOJ and SEC.
Don't expect any of this to change without a statutory fix. DOJ has proven itself remarkably tone deaf, stubborn, and obtuse with respect to FCPA enforcement. Besides, FCPA investigations bring in the big bucks, concomitantly creating a specialty practice that is easily marketable to the private and in-house bar after government employment.