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Erika Blomquist Guest Column in Law360: D&O Coverage Considerations For FCPA Claims
06/08/2010
Erika L. Bright Blomquist
Congress enacted the Foreign Corrupt Practices Act to prevent corporate bribery of foreign officials. The number of FCPA actions initiated by the United States Department of Justice and the U.S. Securities and Exchange Commission has skyrocketed over the past few years. In turn, shareholders and other litigants have increasingly filed “follow-on” civil lawsuits based on FCPA violations. Because of the significant costs associated with FCPA-related litigation, companies must understand and be in a position to negotiate the broadest coverage available under their directors and officers liability insurance policies.
This article is excerpted from a Law360.com guest column. Topics include background on the FCPA and the impact on D&O Insurance, including exclusions, fines and penalties, defense for enforcement actions, separation of insureds, and notice issues.
To read the full text, please click on the PDF link below.