DOJ clarifies successor liability for FCPA violations

Description

Abstract: In a recent opinion release, the U.S. Department of Justice (DOJ) provided guidance on a company’s potential successor liability for an acquisition target’s violations of the Foreign Corrupt Practices Act (FCPA). The opinion clarifies that acquisitions don’t “create liability where none existed before.” In other words, an acquirer isn’t liable for a target’s corrupt acts if the target wasn’t subject to U.S. jurisdiction when they occurred. This article explains the ins and outs of the opinion release.