Steptoe’s Low and Griffin Quoted in Main Justice on SciClone Shareholder Settlement FCPA Trends

Lucinda Low and Sean Griffin were quoted in a Main Justice article titled “SciClone Shareholder Settlement Suggests New Trend in FCPA Derivative Suits.”  The article claims that the December 15 SciClone Pharmaceuticals Inc. settlement with shareholders in a Foreign Corrupt Practices Act (FCPA) derivative lawsuit may mark a new trend in the corporate consequences of foreign bribery investigations.  The California-based drug maker agreed to pay $2.5 million in attorneys’ fees and implement and maintain an extensive compliance program.  

“What struck us about SciClone is that usually the plaintiffs’ lawyers who bring these cases are looking for settlements, they’re usually looking for monetary damages,” Ms. Low, said.  “In this case, really the main focus of the settlement wasn’t monetary, it was the whole compliance infrastructure.”

Justice Department settlements often require compliance programs for companies found violating the foreign bribery law.  Observers said the program in the shareholder settlement may preempt the DOJ requirement, but likely won’t impact the agency’s decision-making.

“I would expect you’ll see a lot more of these suits as time goes on,” Mr. Griffin said.  “It’s so easy to file an FCPA derivatives suits that plaintiffs’ attorneys just take a flyer on it to see how much money they can shake loose, especially if the motion to dismiss is denied.  It can be a fairly quick settlement with not a whole lot of work involved for the plaintiffs’ attorneys, particularly if there’s been a settlement with the DOJ.”

To read the full article, visit Main Justice (subscription required).