Now that sustainability is a board-level issue, companies are under immense pressure to ensure their supply chains are environmentally and ethically accountable. The motivation may come from internal business, consumers, government, shareholders—or all of them. There are targets, commitments, deadlines, and board pressure to match words with deeds.
US agencies such as the SEC, the CFTC and the FTC have extensive enforcement powers to seek significant financial penalties and limit or otherwise affect conduct through court injunctions or administrative orders. Companies and executives under investigation and threatened with enforcement actions by these agencies often choose to settle rather than litigate. Historically, from as cost-benefit analysis, settlement is preferable to the cost of litigation and the long term risks of extensive fights with agencies that would continue to be their regulators.
On 6 December 2022, the US Department of Justice announced the unsealing of an 11-count indictment filed in the US District Court for the Southern District of Texas charging 12 individuals from Texas and Mexico in a violent conspiracy to monopolize the transmigrante industry in Texas.
Companies looking for ways to ensure their supply chains are environmentally and socially ethical often doubt whether they can effect change alone. Companies in certain industries may decide that a joint initiative can be more effective in developing industry-wide standards, and may determine that working together could be more efficient to meet these goals or objectives. However, such collaborations may raise antitrust risks, and many competition authorities are starting to increase scrutiny of these types of collaborations.
On 10 November 2022, following a 3-1 vote, the Federal Trade Commission issued a policy statement expanding its interpretation of the scope of unfair methods of competition under section 5 of the Federal Trade Commission Act. Section 5 of the FTC Act prohibits “unfair methods of competition,” which covers conduct that violates antitrust laws or section 5 itself.
Please join us for a weekly series, hosted by Baker McKenzie’s North America Government Enforcement partners Jeffrey Martino and Jerome Tomas.
This weekly briefing is available on demand and will cover hot topics and current enforcement actions related to white collar crime and criminal investigations in the US and abroad to arm you with the information you need for your business week.
This week’s discussion will cover the following:
• DOJ’s Scrutiny on Interlocking Directorates spurs Board resignations
• DOJ files its first criminal Section 2 attempted monopolization case in decades
On 19 September 2022, the US Attorney for the District of Montana and the US Department of Justice, Antitrust Division filed a criminal information against and plea agreement with the president and owner of a paving and asphalt company to resolve a charge of attempted monopolization. The company owner pled guilty to engaging in anticompetitive conduct with the intent to gain monopoly power in the markets for highway crack sealing services in Montana and Wyoming by proposing to a competitor that they enter into a market-allocation agreement in which the two companies would stop competing against each other by dividing territories in Montana and Wyoming. The company owner also agreed to pay a fine of USD 27,000.
Please join us for a weekly series, hosted by Baker McKenzie’s North America Government Enforcement partners Jeffrey Martino and Jerome Tomas. This weekly briefing is available on demand and will cover hot topics and current enforcement actions related to white collar crime and criminal investigations in the US and abroad to arm you with the information you need for your business week. The latest video chat in the series includes a deep dive into DOJ’s focus on consumer fraud, and the SEC crypto touting case against Kim Kardashian.
Please join us for a weekly series, hosted by Baker McKenzie’s North America Government Enforcement partners Jeffrey Martino and Jerome Tomas.
This weekly briefing is available on demand and will cover hot topics and current enforcement actions related to white collar crime and criminal investigations in the US and abroad to arm you with the information you need for your business week.
This week’s discussion covers Deputy Attorney General Lisa Monaco’s memorandum revising Federal Corporate Criminal Enforcement Policies.
Baker McKenzie’s Government Procurement Update resource center gives you the latest guidance, trends and enforcement actions related to government procurement (both US government contracting and international financing institutions), including suspension and debarment, bid protests, and False Claims Act defense. Calling upon our deep bench of more than 4,000 lawyers and legal professionals worldwide, we will occasionally feature guest practitioners to write about related topics in the criminal, civil, and administrative context. Readers can expect to find practical guidance and tips for compliance with public procurement policies as well as best practices for managing government inquiries and litigation.