FCPA Derivative Suit Dismissed: Complaint Devoid of Specific Allegations Falls Woefully Short

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In November 2010, Tidewater Inc. paid more than $15 million to US regulators to settle charges that it had violated the Foreign Corrupt Practices Act (“FCPA”). Consistent with a growing trend, Tidewater soon faced the threat of even more liability in the form of tag-along private shareholder litigation. Just in time for the Fourth of July holiday last week, however, a federal judge in Louisiana gave Tidewater and a number of its officers and directors reason to celebrate. Judge Jane Triche Milazzo dismissed in its entirety a derivative shareholder complaint against the company (as a nominal defendant) and certain officers and directors because “Plaintiff did not adequately plead demand futility.”

TIDEWATER’S FCPA SETTLEMENTS

Tidewater is a Delaware corporation that owns and operates offshore service and supply vessels to the global offshore energy industry. Tidewater’s wholly owned subsidiary, Tidewater Marine International Inc. (“TMII”), a Panamanian company, provided managerial and administrative oversight for most of Tidewater’s international operations.

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Published In: Business Organization Updates, Civil Procedure Updates, Finance & Banking Updates, International Trade Updates, Securities Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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