Rebecca Worthington

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Company May Characterize Employee as a Compliance Risk

In certain circumstances, a company’s statement that one of its employees poses a significant and unacceptable compliance risk is not defamatory. According to a recent federal appellate decision, such a statement (made by a company while complying with a deferred prosecution agreement relating to Foreign Corrupt Practices Act (FCPA) violations) had no “provably false factual … Continue Reading

DOJ Intervenes in False Claims Case Involving Copay Subsidies

The Department of Justice (DOJ) recently intervened in a False Claims Act (FCA) lawsuit involving allegations of kickbacks for prescription drug copays. The DOJ says the lawsuit makes “clear that the Department will hold accountable drug companies that pay illegal kickbacks to facilitate increased drug prices.” The DOJ “will not allow drug companies to use … Continue Reading

New DOJ Guidance on Cooperation in False Claims Act Matters

This week, the Civil Division of the U.S. Department of Justice released guidelines on cooperation credit in False Claims Act cases. The guidelines strongly emphasize voluntary disclosure, but also provide insight into other actions that could give rise to cooperation credit.… Continue Reading

South Africa Publishes More About Money Laundering Vulnerabilities

As noted in a prior blog post, South Africa’s Financial Intelligence Centre (“FIC”) periodically releases financial crime typologies and case studies. Recently it published information about typologies in two different lines of business: (1) casinos and the gambling industry, and (2) the property sector, discussed in this post.… Continue Reading

DOJ Recovers More Than $2.8 Billion for False Claims

The federal government’s recoveries for false claims during FY2018 topped $2.8 billion. The Department of Justice (DOJ) recently released this and other statistics for its civil False Claims Act recoveries since 1986. Although the most numerous and lucrative recoveries occurred in the health care industry, the DOJ reported 35 new qui tam cases involving the Department … Continue Reading

Third Circuit Clarifies Public Disclosure Bar in False Claims Act

Third Circuit Clarifies Public Disclosure Bar in False Claims Act In United States v. Omnicare, Inc., the Third Circuit clarified the operation of the public disclosure bar in the False Claims Act (FCA). The court held that publicly available information “could not have reasonably or plausibly supported an inference” of fraud. This information included government … Continue Reading

Does C Plea Mean Corporate Plea?

Many conclude that a C plea means a Corporate Plea. Used infrequently, a C plea restricts discretion of a federal district judge to sentence a criminal defendant. By expressing his concerns about a proposed C plea for a company, one federal judge changed the result. In an article published by the American Health Lawyers Association, … Continue Reading

Amendments to U.S. Rules of Criminal Procedure

The U.S. Supreme Court has adopted three amendments to the Federal Rules of Criminal Procedure (“Rules”). They affect Rule 12.4 (Disclosure Statement), Rule 45 (Computing and Extending Time), and Rule 49 (Serving and Filing Papers). The changes do not reflect particularly large shifts in criminal procedure, but attorneys should be aware of them since, as … Continue Reading

South Africa FIC Publishes Financial Crime Typologies

South Africa’s regulator, the Financial Intelligence Centre (“FIC”), oversees receipt and analysis of financial intelligence as well as its dissemination.  FIC recently released a booklet that provides “insight on some of the methods criminals use to abuse the financial system.” The booklet provides nine different case studies, including one about rhinoceros poaching.… Continue Reading

Court’s Detailed Rejection of Plea Leads to New Bargain

A recent blog post summarized an opinion in which a district court catalogued his reasons for rejecting a corporate “C” plea involving a pharmaceutical company.  Several developments have occurred since the court’s opinion including a plea and sentencing hearing scheduled for January 30, 2018. … Continue Reading

DOJ Recovers $32.3 Million For Drug Pricing Despite Limited Role in FCA Case

The Department of Justice (DOJ) recently announced a False Claims Act (FCA) settlement with Kmart Corporation for $32.3 million.  The settlement is part of a global $59 million settlement; the relator will receive $9.3 million. Former Kmart Employee Filed the Qui Tam James Garbe, the relator, was employed by Kmart as a pharmacist from 2007 until … Continue Reading

Corporate “C” Plea Not Good Enough

A recent decision discusses a corporate “C” plea not being good enough for a federal judge. The case involves a pharmaceutical company trying to negotiate a specific sentence with prosecutors. The judge’s analysis follows below after a short background about a C plea. Types of Guilty Pleas Federal Criminal Rule 11(c)(1) governs plea agreement procedure. It includes a limitation: “The court must not participate … Continue Reading

Applying Escobar — Decisions on Materiality, Falsity and Other Issues

June 16, 2017, marks the one-year anniversary of the precedent-setting U.S. Supreme Court decision in Universal Health Services v. United States ex rel. Escobar (Escobar), which approved the implied false certification theory as a basis for liability under the False Claims Act (FCA). Because the decision impacts every provider who supplies goods and services to … Continue Reading

2014 Corruption Perceptions Index

Transparency International recently released its 2014 Corruption Perceptions Index. The Index is an excellent tool for identifying geographic areas that generally present corruption-related risks and where companies are likely to encounter corruption-related challenges. Twelve data sources were used to develop the 2014 Index, including ratings and assessments from the African Development Bank, the Economist Intelligence … Continue Reading

Monthly China Anticorruption Update Report — February 2013

The most recent FCPA and anticorruption enforcement developments involving the People’s Republic of China (PRC) are summarized below. Thanks as always to Squire Sanders’ Shanghai Office for monitoring these enforcement actions. 1. New Law or Regulation State level: No developments Local level (Beijing & Shanghai): No developments Communist Party Rules: No developments 2. Upcoming Law … Continue Reading

Monthly China Anticorruption Update Report – January 2013

The most recent FCPA and anticorruption enforcement developments involving the People’s Republic of China (PRC) are summarized below.  Thanks as always to Squire Sanders’ Shanghai Office for monitoring these enforcement actions. 1.        New law or regulation State level: (1) The Interpretation on Several Issues Concerning the Specific Application of Law in the Trial of Criminal Cases … Continue Reading

Transparency International’s 2012 Corruption Perceptions Index

Transparency International recently released its 2012 Corruption Perceptions Index (“CPI”). The CPI ranks countries based on perceived corruption of a country’s public sector. The CPI ranking of a country is often used as a factor in conducting anti-bribery and corruption risk analysis in a given country. It is a valuable tool for assessing risk levels … Continue Reading

Biomet, Inc. Resolves FCPA Investigation

Charged by both the SEC and DOJ with violating the FCPA, Indiana-based medical device company Biomet, Inc. (“Biomet”) agreed to pay more than $22 million to settle the charges.  The charges arose from SEC and DOJ’s ongoing global investigation into medical device companies bribing publicly-employed physicians.  Although the company’s common stock is no longer publicly … Continue Reading

U.S. Chamber of Commerce Seeks Guidance Concerning the FCPA

On February 21, 2012 The U.S. Chamber of Commerce Institute for Legal Reform (ILR) sent a letter to the DOJ requesting guidance on “several issues and questions of significant concern to businesses seeking in good faith to comply with the FCPA.”  The ILR raised the following issues: “Instrumentalities”: The ILR sought clarification on what types of … Continue Reading

John Joseph O’Shea Acquitted of All Substantive FCPA Counts

Conduct Following the close of the prosecution’s case on a trial for charges arising under the Foreign Corrupt Practices Act (“FCPA”), John Joseph O’Shea (“O’Shea”) was acquitted of all substantive FCPA counts, with the court (Southern District of Texas) finding that O’Shea’s conduct could be reasonably explained by lawful motives.  O’Shea, a former general manager … Continue Reading
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