Rolls-Royce plc and Rolls-Royce Energy Systems Inc. (collectively, "Rolls-Royce") agreed to pay an $800 million global settlement to resolve allegations by the UK Serious Fraud Office ("SFO"), the U.S. Department of Justice and the Brazilian Ministério Público Federal ("MPF") that the car manufacturer had conducted a long-running scheme to bribe foreign officials in South America, the Middle East, Eastern Europe and Asia in exchange for assistance in obtaining government contracts. In addition to the payment of disgorgements and fines – the largest amounts ever imposed under the UK Bribery Act 2010 – Rolls-Royce agreed to implement a number of compliance measures and reporting requirements pursuant to deferred prosecution agreements ("DPAs") with UK, U.S. and Brazilian authorities.
In a related memorandum, Cadwalader attorneys Jodi Avergun, Steven Baker, Bret Campbell, Joseph Moreno, Jenna Rennie, Janaki Tampi and Kendra Wharton examine how the joint settlement, which was spearheaded by the SFO, heralds a new era in global cooperation and coordination in the enforcement of bribery and corruption laws.
Commentary
Gone are the days of U.S. authorities comprising the lone sheriff in town, policing foreign companies that have contacts in the U.S. while consoling themselves with non-intervention by the home countries. Rather, companies must be aware that there are now consequences for non-compliance on their home turf as well. As the SFO and other foreign authorities demonstrate the will to pursue bribery and corruption cases, the U.S. may allow the countries in which corrupt companies are domiciled to police those practices at home.
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