Investigations, Enforcement, & Compliance Alerts

On October 22, 2024, the Department of Justice announced a False Claims Act (FCA) settlement related to a government contractor’s failure to adhere to certain cybersecurity requirements. Specifically, Pennsylvania State University (Penn State) has agreed to pay US$1.25M to resolve allegations that it violated the FCA by failing to comply with cybersecurity requirements in fifteen contracts or subcontracts involving the Department of Defense (DOD) or the National Aeronautics and Space Administration (NASA). The DOJ announcement is available here: https://www.justice.gov/opa/pr/pennsylvania-state-university-agrees-pay-125m-resolve-false-claims-act-allegations-relating.

It is no longer a secret that the U.S. Department of Justice (DOJ) has recently, and in some ways radically, increased its enforcement of the Foreign Agents Registration Act (FARA or the Act) and related foreign influence and lobbying laws that require adequate disclosure and transparency about domestic activities performed on behalf of foreign governments, companies, nonprofits, and other foreign actors. The uptick in recent prosecutions centered around improper foreign influence has been highlighted by the latest indictment of New York Mayor Eric Adams for allegedly receiving bribes and soliciting illegal campaign contributions from foreign sources tied to Turkey. He’s the third politician in just the last year who has been charged with crimes involving foreign influence operations—in the case of New Jersey Senator Bob Menendez, it was Egypt, and for Texas Congressman Henry Cuellar, it was Azerbaijan and a Mexican bank.

The U.S. Department of Justice (DOJ) recently updated its Evaluation of Corporate Compliance Programs (ECCP) to reflect emerging challenges in corporate compliance.

Health care companies and stakeholders should be prepared for an uptick in antitrust complaints and investigations in the short term, driven by the launch of HealthyCompetition.gov. Despite the anticipated short-term impact, the long-term impact remains uncertain and depends on the sustained engagement and use of the tipline by the public.

The Department of Justice is intensifying its corporate enforcement efforts with a new whistleblower program. DOJ has made it clear that corporations and individuals with knowledge of corporate misconduct should “come see us before we come see you.”

In analyzing a government contractor target for a proposed acquisition—such as a merger, asset sale, or stock purchase—due diligence may uncover a seller’s noncompliance with certain Federal Acquisition Regulations or other applicable regulations.

The U.S. Department of Justice’s latest Foreign Corrupt Practices Act (FCPA) resolution with Glencore plc and related entities raises new questions about independent compliance monitors, and whether they are back to stay.

In a speech on March 25, 2022, Assistant Attorney General Kenneth Polite, Jr. provided significant details regarding Department of Justice expectations for corporate compliance programs and how those programs will be assessed and considered in determining appropriate resolutions of investigations of corporate misconduct.

On March 3, 2022, U.S. Attorney General Merrick B. Garland announced several significant initiatives aimed at strengthening the ability of the Department of Justice to combat corporate crime.

The United States Department of Justice (DOJ) recently made it clear: fighting corporate crime is one of the Biden Administration’s top priorities. On February 15, 2022, Winston & Strawn partners Jack Knight, Kobi Brinson, and Alan Stevens discussed the new DOJ policies and their implications for corporations. This webinar was presented in partnership with the Charlotte chapter of the Association of Corporate Counsel (ACC).

The recent announcement by U.S. Deputy Attorney General Lisa Monaco of major changes in corporate enforcement policy signals a strong commitment by the Department of Justice (DOJ) to more rigorous scrutiny of prior corporate misconduct, greater focus on holding individuals accountable, and renewed emphasis on the utilization of monitorships to ensure compliance.