We have a new poster-child for a defective corporate culture of wrongdoing. Novartis has joined the exclusive club, along with Siemens, General Motors, Wells Fargo, and others in the misconduct Hall of Fame. ...more
7/8/2020
/ Anti-Corruption ,
Anti-Kickback Statute ,
Bribery ,
Charitable Donations ,
Compliance ,
Corporate Culture ,
Corporate Integrity Agreement ,
Department of Justice (DOJ) ,
False Claims Act (FCA) ,
Foreign Corrupt Practices Act (FCPA) ,
Novartis
Notwithstanding the pandemic and remote working arrangements, the Securities and Exchange Commission is continuing to bring FCPA enforcement actions. In its latest action, the SEC settled with Alexion Pharmaceuticals for $21...more
Companies are under enormous stress given the pandemic and the social unrest. Employees are looking to companies to provide some sense of stability and ultimately leadership. Corporate leaders are being tested and it is...more
At the outset, Novartis is “lucky” – the settlement is relatively positive, despite its 2016 SEC enforcement action in China. Given Novartis weak culture of compliance (if anything, a better description may be a culture of...more
7/1/2020
/ Bribery ,
Compliance ,
Corruption ,
Department of Justice (DOJ) ,
Foreign Corrupt Practices Act (FCPA) ,
Internal Controls ,
Life Sciences ,
Novartis ,
Pharmaceutical Industry ,
Popular ,
Prescription Drugs ,
Securities and Exchange Commission (SEC) ,
Senior Managers ,
Settlement ,
White Collar Crimes
Novartis and Alcon engaged in separate but significant bribery schemes. Considering the fact that Novartis had a similar violation in 2016 in China involving much of the same conduct, Novartis’ conduct reflects a weak...more
Even during this difficult time of the pandemic, economic uncertainty and social unrest, the Justice Department and the SEC have concluded a major FCPA enforcement action....more
Companies that rely on mergers and acquisition for growth have to build robust post-acquisition integration policies and controls. Such a requirement applies not only to ethics and compliance program integration but to...more
Even during this difficult time of the pandemic, economic uncertainty and social unrest, the Justice Department and the SEC have concluded a major FCPA enforcement action.
Novartis and Alcon (which was a Novartis subsidiary...more
The Justice Department’s recent revisions to the Evaluation of Corporate Compliance Programs highlights an important trend and evolution of prosecution focus. DOJ’s Revised Corporate Compliance Guidance recognized and...more
After a lengthy sentencing hearing in federal court in San Francisco, Bumble Bee CEO Chris Lischewski was sentenced to 40 months in prison for his involvement in a tuna price-fixing conspiracy. The judge rejected...more
6/25/2020
/ Antitrust Conspiracies ,
Bumble Bee Foods ,
Compliance ,
Corporate Counsel ,
Corruption ,
Criminal Conspiracy ,
Criminal Convictions ,
Fishing Industry ,
Food Manufacturers ,
Food Supply ,
Low-Income Issues ,
Price-Fixing ,
Retail Market ,
Supply Chain ,
White Collar Crimes
The Justice Department’s recent revisions to the Evaluation of Corporate Compliance Programs highlights an important trend and evolution of prosecution focus. DOJ’s Revised Corporate Compliance Guidance recognized and...more
The Antitrust Division’s recent indictment of the boiler chicken executives provided an important reminder to compliance officers on the importance of an effective antitrust compliance program....more
6/18/2020
/ Agribusiness ,
Anti-Competitive ,
Antitrust Division ,
Antitrust Provisions ,
Antitrust Violations ,
C-Suite Executives ,
Competition ,
Compliance ,
Criminal Prosecution ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Food Supply ,
Indictments ,
Poultry ,
Price-Fixing ,
Retail Market ,
Suppliers ,
Tyson Foods
The recent indictment of four executives involved in a long-running price-fixing scheme among broiler chicken suppliers provides an important window into how such conspiracies work and evade detection....more
6/18/2020
/ Agribusiness ,
Anti-Competitive ,
Antitrust Division ,
Antitrust Provisions ,
Antitrust Violations ,
Competition ,
Compliance ,
Criminal Prosecution ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Food Supply ,
Indictments ,
Poultry ,
Price-Fixing ,
Retail Market ,
Suppliers ,
Tyson Foods
The Justice Department’s Antitrust Division recently announced the indictment in Colorado federal court of four executives from two chicken producer companies for participation in a long-running price-fixing and bid-rigging...more
6/17/2020
/ Agribusiness ,
Anti-Competitive ,
Antitrust Division ,
Antitrust Provisions ,
Antitrust Violations ,
Competition ,
Compliance ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Food Supply ,
Poultry ,
Price-Fixing ,
Retail Market ,
Suppliers ,
Tyson Foods
In response to an increase in deceptive shipping practices, on May 14, 2020, the State Department, Treasury Department and the Coast Guard issued a warning to the maritime industry, and those involved in the energy and metals...more
6/15/2020
/ Antitrust Provisions ,
Coast Guard ,
Compliance ,
Economic Sanctions ,
Maritime Transport ,
Shipping ,
Shipping Cargo ,
Supply Chain ,
U.S. Treasury ,
Unfair or Deceptive Trade Practices ,
US Department of State ,
Vessels
The often-used phrase of “tone at the top” is inartful in my view – an organization’s leadership culture is defined much more broadly than the word “tone” implies. A company’s culture extends well beyond senior leadership...more
6/12/2020
/ Blue Bell Creameries ,
Compliance ,
Corporate Culture ,
Corporate Misconduct ,
Ethics ,
Food Contamination ,
Food Manufacturers ,
Food Safety ,
Food Supply ,
Listeria ,
Quality Control Plan ,
White Collar Crimes
Let’s face it – DOJ’s revised Evaluation of Corporate Compliance Program Guidance reflects an attempt (although an important one) by DOJ’s leadership to catch up with the compliance industry....more
The Justice Department’s revised Evaluation of Corporate Compliance Program Guidance (“DOJ Guidance”) was released with little fanfare. It is difficult to find the press release that accompanied the release....more
DOJ is catching up to compliance officers and evolving best practices. Say what you want, DOJ is behind the curve of the compliance industry. But you have to give DOJ credit – they are moving quickly to update its Guidance....more
If anyone thought that DOJ was planning to relax its expectations regarding corporate compliance programs, forget it – DOJ has removed all doubt. In an announcement on Monday, June 1, 2020, DOJ released revised guidance,...more
The drug and medical device/testing industry is under significant pressure to develop new products to address the COVID-19 pandemic. The federal government is increasing spending and support of drug and device companies in...more
6/2/2020
/ Compliance ,
Coronavirus/COVID-19 ,
Federal Contractors ,
Food and Drug Administration (FDA) ,
Fraud and Abuse ,
Kickbacks ,
Life Sciences ,
Manufacturers ,
Medical Devices ,
Pharmaceutical Industry ,
Prescription Drugs ,
Regulatory Standards ,
Vaccinations
Boeing’s 737 Max problems began over ten years ago. Facing competitive pressure from Airbus, Boeing embraced the 737 Max as its competitive savior. After two horrific crashes killing a total of 346 people, the FAA ordered...more
When a company suffers from serious misconduct, the source of such a failure usually lies in its corporate culture. I know this theory sounds relatively obvious, but bear with me here....more
The NAVEX Global Report is based on 2019 data before the pandemic occurred. Nonetheless, the insights are helpful and provide important insights that can be applied in a post-pandemic time....more
Boeing Airlines was the leader in safety and financial success. Unfortunately, Boeing has suffered a significant fall from grace as a result of its 737 Max safety record and two devastating crashes in Indonesia and Ethiopia....more