Red Notice Newsletter - September 2018

ANTICORRUPTION DEVELOPMENTS -

Petrobras Settles with U.S. Authorities Over Alleged FCPA Violations -

On September 27, 2018, the U.S. Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) announced they had reached a settlement agreement with Brazil’s state-owned energy company, Petroleo Brasiliero SA (“Petrobras”) regarding allegations that now-former Petrobras executives participated in a corrupt payment scheme, providing payments to Brazilian officials and then concealing the payments in the company’s books and records. Petrobras agreed to pay a total of $853 million in fines, as part of a non-prosecution agreement with the DOJ, 80 percent of which will be paid into a fund set up in Brazil related to parallel prosecutions of the conduct at issue in that country. SEC and DOJ will split the remaining funds equally. In the settlement agreement, Petrobras took responsibility for violating the books and records provisions of the Foreign Corrupt Practices Act (FCPA), but the agreement does not admit other improper conduct on the part of Petrobras.

Petrobras had previously agreed to pay $2.9 billion to aggrieved shareholders, as part of a settlement in a class action lawsuit in the Southern District of New York concerning the same alleged conduct, as reported in the January 2018 edition of Red Notice. The SEC’s order notes that the SEC levied a payment of $933.4 million against Petrobras, but credited that amount to the money already paid as part of the lawsuit settlement.

Please see full Newsletter below for more information.

LOADING PDF: If there are any problems, click here to download the file.

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.

© Akin Gump Strauss Hauer & Feld LLP | Attorney Advertising

Written by:

Akin Gump Strauss Hauer & Feld LLP
Contact
more
less

Akin Gump Strauss Hauer & Feld LLP on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.