Clifford Chance
Collateral civil action lawsuits for corrupt wrongdoing: New to Australia
18 March 2015
When US listed companies discover circumstances of alleged bribery, their consequent internal investigations and disclosures to relevant enforcement agencies are very often only half the battle. United States companies have increasingly been faced with follow-on civil lawsuits brought by aggrieved stakeholders who claim that the corrupt wrongdoing, or the failure to disclose it, as actionable offenses. This is not just a US problem; the first class-action law suit has been filed in Australia against a company for its alleged failure to disclose corrupt wrongdoing. The high cost of collateral civil actions and the resulting reputational damage are two good reasons companies in Asia should consider carefully how to manage corrupt wrongdoing internally and externally.When US listed companies discover circumstances of alleged bribery, their consequent internal investigations and disclosures to relevant enforcement agencies are very often only half the battle. United States companies have increasingly been faced with follow-on civil lawsuits brought by aggrieved stakeholders who claim that the corrupt wrongdoing, or the failure to disclose it, as actionable offenses. This is not just a US problem; the first class-action law suit has been filed in Australia against a company for its alleged failure to disclose corrupt wrongdoing. The high cost of collateral civil actions and the resulting reputational damage are two good reasons companies in Asia should consider carefully how to manage corrupt wrongdoing internally and externally.
