While the United States has announced a pause on Foreign Corrupt Practices Act enforcement, the rest of the world is increasing its focus on prosecuting corrupt activities. This is a reminder to companies with a global footprint, including those headquartered in the U.S. that may not have physical operations overseas, that foreign activities likely fall … Continue Reading
The decision-making process involved in disclosing a cyber incident is a nuanced and delicate dance. Companies need to consider a myriad of factors, including when to disclose and how much detail to disclose to employees, customers, or regulators, such as the Securities and Exchange Commission (“SEC”). A New York bank was recently forced to pay … Continue Reading
In a post published earlier this year, we highlighted the importance of proactively managing artificial intelligence (“AI”) risks as part of an effective compliance program. Specifically, we explored the key considerations for organizations to effectively navigate AI-related risks and enhance their compliance efforts. We also referenced Deputy Attorney General Lisa O. Monaco’s announcement incorporating an … Continue Reading
Summer may be coming to an end, but whistleblower awards are far from over. On August 23, 2024, the Securities Exchange Commission (“SEC”) announced payment of over $98 million total to two whistleblowers who provided the SEC with information that led to successful enforcement actions – the fifth largest since the program’s inception in 2011, … Continue Reading
In December 2023, the U.S. Securities and Exchange Commission’s (“SEC”) new rule requiring disclosure of material cybersecurity incidents became effective. SPB previously analyzed how the new rule applies to incidents affecting third-party vendors and what companies can do to manage reporting risks created by third-party cybersecurity incidents. In the first half of 2024, more than … Continue Reading
In today’s rapidly evolving technological landscape, the integration of artificial intelligence (“AI”) into business operations presents unparalleled opportunities for efficiency and innovation. Alongside these advancements, however, come new challenges and risks that must be addressed to ensure regulatory compliance and ethical responsibility. Recently, the Department of Justice (“DOJ”) has underscored the importance of proactively managing … Continue Reading
Deputy Attorney General Lisa Monaco’s (“Monaco”) recent remarks at Oxford University shed light on the evolving intersection of artificial intelligence (“AI”) and the criminal enforcement landscape and its profound implications for the United States Department of Justice and beyond. As the Chief Operating Officer of the Department of Justice, Monaco’s insights underscore the critical importance … Continue Reading
The rules on reporting cybersecurity risks and incidents pose many challenges for companies. Those challenges can be even more difficult when the cybersecurity incident affects third-party systems. With no exceptions for third-party cybersecurity incidents under the new cybersecurity reporting regulations, companies should take proactive steps to assess and respond appropriately to third-party cybersecurity incidents. The … Continue Reading
In September, a class action lawsuit (Mannacio v. Discover Financial Services, et al., No. 23-cv-06788 (N.D. Ill.)) was filed against Discover Financial Services (“Discover”) alleging Discover and certain current and/or former executives violated the Securities Exchange Act of 1934. Specifically, the class action complaint alleged that the defendants made false and/or misleading statements and/or failed … Continue Reading
Earlier this month, the Supreme Court of the United States decided Dubin v. United States, No. 22-10, 2023 WL 3872518, at *1 (U.S. June 8, 2023), in favor of the defendant. Justice Sonia Sotomayor wrote the opinion for the Court, which held that 18 U.S.C. § 1028A(a)(1), aggravated identity theft, is violated only when the … Continue Reading
Last week, the Sixth Circuit issued an important decision limiting the scope of claims alleging violations of the Anti-Kickback Statute that are brought under the False Claims Act. See Shannon Martin, M.D., et al. v. Hathaway, et al., No. 22-1463 (March 28, 2023). Chief Judge Sutton wrote the opinion for the Court, which Judge Siler … Continue Reading
On Friday, March 3, 2023, the DOJ released its updated Evaluation of Corporate Compliance Programs, which included new guidance on ephemeral messaging platforms and other issues. This new guidance was released contemporaneously with Assistant Attorney General Kenneth A. Polite, Jr.’s (‘Polite”) speech at the American Bar Association’s (“ABA”) 38th Annual National Institute on White Collar … Continue Reading
At last week’s American Bar Association’s 38th Annual National Institute on White Collar Crime, both Deputy Attorney General Lisa O. Monaco and Assistant Attorney General Kenneth A. Polite, Jr. provided additional insight into the DOJ’s continued focus on corporate criminal enforcement. Our previous blog post details the expansion of DOJ’s National Security Division and the … Continue Reading
On February 22, 2023, the Department of Justice (“DOJ”) announced the new United States Attorneys’ Offices Voluntary Self-Disclosure Policy (“VSD Policy”). Following on the heels of the Criminal Division’s revised Corporate Enforcement Policy, the VSD Policy was also developed in response to the “Monaco Memo,” which directed each component of the DOJ that prosecutes corporate … Continue Reading
On January 17, 2023, Assistant Attorney General for the Criminal Division (“AAG”) Kenneth A. Polite, Jr. announced significant revisions to the U.S. Department of Justice, Criminal Division, corporate criminal enforcement policy (“CEP”).[1] The new CEP changes offer additional incentives to companies for voluntary self-disclosures, cooperation, and remediation. The new CEP reflects an increased emphasis on … Continue Reading
On September 15, 2022, Deputy Attorney General Lisa Monaco announced updated guidelines for the U.S. Department of Justice’s (“DOJ”) corporate criminal enforcement in a speech at New York University Law School. Monaco previously announced in October 2021 that DOJ would take a tougher stance on white collar crime. Shortly thereafter, Monaco formed an advisory group … Continue Reading
The authors would like to thank Nicole Brenner for her contribution to this post. Trade secrets offer companies an invaluable advantage over competitors, but only if the company maintains secrecy and responds promptly to threats. If a company’s success depends on its trade secrets, the protections in place to maintain those secrets will be scrutinized … Continue Reading
The authors would like to thank Thomas Fogarty and Anya Bharat Ram for their contributions to this post. Section 1832 of the Economic Espionage Act of 1996 (the “Act”) criminalizes the theft of trade secrets “intended for use in interstate or foreign commerce, to the economic benefit of anyone other than the owner.” 18 U.S.C. § 1832(a). … Continue Reading
As we discussed in a previous article, companies can be at risk from internal and external sources of industrial espionage, in an attempt to gain an unfair competitive advantage or disrupt operations. Legal Protections Owners of a trade secret have a federal cause of action against an individual or company that misappropriates their trade secret … Continue Reading
Industrial espionage refers to various activities performed to gain an unfair competitive advantage, rather than for national security purposes. As we discussed in a previous article, the ways in which industrial espionage can affect a company are numerous and include theft of trade secrets and disruption to operation. Section 1832 of the Economic Espionage Act … Continue Reading
We recently shared a timely post on Consumer Privacy World that, given the focus of, we wanted to call to your attention. “President Biden has recently delivered on a long stated priority of his presidency: requiring the disclosure of cyber security incidents for companies that operate critical infrastructure. After announcing an executive order in May … Continue Reading
On February 23, 2022, the U.S. Department of Justice (“DOJ”) announced the end of an initiative to prioritize suspected Chinese economic espionage. The intent of the initiative was to prevent China’s intelligence apparatus from stealing U.S. technology, specifically from research institutions and universities. However, DOJ National Security Division Chief Matthew Olsen stated the initiative “fueled … Continue Reading
In 1996, President Clinton signed the Economic Espionage Act (the “Act”). At the time, the principal proponents of the law included business leaders from the then burgeoning Silicon Valley as well as from the aerospace industry. Proponents of the Act claimed foreign entities were actively attempting to steal trade secrets and that the existing laws … Continue Reading
The American Rescue Plan Act allocated $100 million to the Small Business Administration to be distributed to various “Hub” organizations to further disseminate among their “Spoke” partners. The purpose behind this funding structure is to better reach small businesses in underserved communities, which may not have received the full benefit of COVID-19-related economic relief in … Continue Reading
