FCPA Shouldn't Be Platform For Derivative Litigation
November 22, 2010, 3:21 PM EST
Law360, New York (November 22, 2010, 3:21 PM EST) -- The whistleblower provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act has been heralded as a necessary step in reforming corporate conduct in America. Yet, the act is likely to spur previously untenable lawsuits by private litigants, thereby increasing the regulatory uncertainty that multinational corporations face and imposing greater legal costs on already strained corporate budgets.
Much attention has been focused on the threat of increased scrutiny for Foreign Corrupt Practices Act violations posed by the act’s whistleblower provision, which provides monetary rewards to...