The Justice Department’s new Corporate Enforcement Policy and the heightened enforcement and compliance expectations were put to the test in its announcement of a $315 million settlement of bribery charges with ABB, a three-time loser in foreign bribery enforcement. In some respects, the new policy should not apply to ABB’s case given its recent announcement but nonetheless the ABB resolution provides some important indicators of important issues for future enforcement actions.

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The Justice Department’s new Corporate Enforcement Policy and the heightened enforcement and compliance expectations were put to the test in its announcement of a $315 million settlement of bribery charges with ABB, a three-time loser in foreign bribery enforcement. In some respects, the new policy should not apply to ABB’s case given its recent announcement but nonetheless the ABB resolution provides some important indicators of important issues for future enforcement actions.

I expect some will say that DOJ’s enforcement action against ABB was a wrist slap for a three-time loser. However, after reading the documents, DOJ’s resolution of the ABB case is reasonable and adheres to its stated principles governing FCPA enforcement actions. However you interpret this case, the ABB enforcement action demonstrates yet again the vitality of DOJ’s commitment to FCPA enforcement, and that the industry can expect additional enforcement actions, perhaps another before years end that may fall within the “blockbuster” category.

Two ABB subsidiaries, one in South Africa and the other in Switzerland, each separately agreed to enter a guilty plea to FCPA conspiracy for violation of the bribery provisions. ABB’s parent agreed to enter into a three-year deferred prosecution agreement (“DPA”) for the same conduct.

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