The SEC announced that it had reached a settlement with Technip for multiple violations of the Foreign Corrupt Practices Act (FCPA). The SEC allegations focus on Technip’s role as a global engineering, construction and services company based in Paris, France in bribing Nigerian government officials over a 10-year period in order to win construction contracts in Nigeria worth more than $6 billion. The SEC also charged that Technip engaged in books and records and internal controls violations related to the bribery.
1. Go to the U.S. Department of Justice website (www.justice.gov) and briefly summarize the the Foreign Corrupt Practices Act?
2. Why would the SEC have any jurisdiction over a French firm doing business in Nigeria? Who is one of Technip’s joint venture partners?
3. What did the company do in February 2010 to prepare its shareholders for this potential settlement?
Black, B. (2010) Technip Settles FCPA Charges with SEC and DOJ, Securities Law Prof Blog, June 28 (Retrievable online at http://www.lawprofessors.typepad.com/securities/)