Teva Pharmaceutical’s $519 million enforcement action last month included disgorgement to the SEC of $236 million — the second biggest FCPA disgorgement of all time.
Teva knocked Daimler off the top ten disgorgement list. Daimler disgorged $91.4 million to the SEC in 2010.
Four companies made the disgorgement top ten list in 2016. In addition to Teva, joining this year were Och-Ziff, VimpelCom, and JPMorgan Chase.
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Disgorgement, according to Contributing Editor Marc Alain Bohn, is a remedy authorized by the Securities Exchange Act of 1934 that’s “used to deprive wrong-doers of their ill-gotten gains and deter violations of federal securities law.”
Disgorgement first appeared in an FCPA enforcement action in 2004 when ABB Ltd disgorged $5.9 million to resolve books and records and internal controls offenses.
Since then the SEC has used disgorgement in most of its FCPA-related enforcement actions.
The DOJ’s Pilot Program introduced in April this year requires companies to disgorge profits to be eligible for a declination.
None of the Pilot Program disgorgements have landed on the top ten disgorgement list.
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Here are the current top ten FCPA-related corporate disgorgements. All amounts also include pre-judgment interest:
1. Siemens $350 million in 2008
2. Teva $236 million in 2016
3. Och-Ziff $199 million in 2016
4. KBR $177 million in 2009
5. VimpelCom $167.5 million in 2016
6. Alcoa $161 million in 2014
7. Total S.A. $153 million in 2013
8. JPMorgan Chase $130.5 million in 2016
9. Snamprogetti $125 million in 2010
10. Technip $98 million in 2010
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For comparison, here’s our current list of the top ten FCPA enforcement actions.
Richard L. Cassin is the publisher and editor of the FCPA Blog.