FCPA

2011 marked yet another dynamic year for the Foreign Corrupt Practices Act ("FCPA"), including numerous significant enforcement actions, more trials than in any other year in the history of the statute, and a growing public debate about the policy ramifications of a U.S.-dominated international anti-corruption enforcement field.  Those close to the statute can feel the unmatched pace at which the 34-year-old law is now developing.  With more litigated decisions, more bills pending in Congress, and more interplay between the FCPA and other international laws prohibiting cross-border bribery, there is a growing sense of urgency amongst FCPA practitioners as to the direction the statute will take in the coming years. 

On May 17, 2011, the U.S. Securities and Exchange Commission ("SEC") announced its first deferred prosecution agreement ("DPA").  The DPA was with Luxembourg-based Tenaris S.A., a global steel pipe manufacturer and supplier for the energy industry, to resolve alleged violations of the Foreign Corrupt Practices Act ("FCPA").[1]  Tenaris, founded in Argentina, is a foreign private issuer with American Depository Shares ("ADSs") listed on the New York Stock Exchange.  Tenaris agreed to pay $4.79 million in disgorgement plus $641,900 in prejudgment interest.  Separately, Tenaris resolved a parallel investigation by the U.S. Department of Justice ("DOJ") by entering into a separate non-prosecution agreement ("NPA") and agreeing to pay $3.5 million in fines.  The settlement is significant because it is the SEC’s first use of a DPA since it announced its Cooperation Initiative last year.