HP and Hyperdynamics Suits Illustrate the Risk of Collateral Liability for FCPA Investigations

The potential damage from an FCPA investigation extends beyond actions by the DOJ and the SEC – civil lawsuits related to the investigations loom large.  The success rate of such cases is mediocre, but the cost of defending them, in terms of money and reputation, can be high.  Two recently-filed lawsuits showcase two types of civil cases that can grow from an FCPA investigation – a derivative action and a securities class action.  This article analyzes recent cases brought against Hewlett Packard – which has recently settled FCPA charges with the government for $108 million – and Hyperdynamics.  See also “How to Anticipate and Manage Collateral Litigation after an FCPA Investigation Becomes Public” (Aug. 21, 2013); and “Halliburton Settles Shareholder Derivative Suits Alleging Breaches of Fiduciary Duty Stemming from Inadequate Internal Controls and Violations of the FCPA” (Aug. 8, 2012).

To read the full article

Continue reading your article with an ACR subscription.