FCPAméricas Blog

Brand Names and More (Why the Wal-Mart Bribery Case is a Big Deal)

Author: Matteson Ellis

In the wake of the New York Times exposé on bribery at Wal-Mart’s Mexico operations, much has been written about the case’s meaning, some good and some bad. Some commentators persuasively speculate that it could mean the death knell for FCPA reform. Others rightly point out the case’s potential negative effects on foreign investment in Mexico. Some looking at the FCPA for the first-time mistakenly suggest that it is an old, obscure, and backwards law, ignoring the fact that the FCPA serves as the cornerstone of a global movement to criminalize foreign bribery. The law has also generated an entire industry around helping companies manage corruption risks and enhance compliance when operating abroad.

The reason this case might ultimately be... Read more

Matteson Ellis Law Comments on Walmart FCPA Compliance Issues

Author: Matteson Ellis

Over the last 24 hours, a Matteson Ellis Law press release has been picked up by hundreds of sources. A copy of the news release is provided below.

Walmart investigation shows need for companies to seek guidance on FCPA compliance

AUSTIN, Texas–(BUSINESS WIRE)–Recent revelations of widespread bribery in Walmart’s Mexico operations highlight the significant risks associated with the U.S. Foreign Corrupt Practices Act (FCPA) when operating in Latin America and the essential need for robust compliance programs.

“The Walmart case reminds us that, when operating in the region, U.S. companies must have detailed internal controls in place and high-level commitments to compliance from senior management. One of these components does not work without the other.”

Matteson Ellis, Founder and Principal of Matteson Ellis Law, PLLC... Read more

Wal-Mart’s Bribery in Mexico (Part 2: Insights into Specific Corruption Risks)

Author: Matteson Ellis

A lot has been discussed about Wal-Mart over the last three days since the New York Times’ bribery story broke. FCPAméricas offered its initial thoughts in Part 1 of this series. The story will no doubt continue. Enforcement officials will eventually act. The ways in which the New York Times obtained such detailed information will hopefully emerge. A plaintiff’s law firm has already purchased the Google advertising search terms “FCPA Attorneys Wal-Mart,” and shareholder derivative suits are sure to follow.

What is the anti-corruption compliance professional to make of all of this? Below, FCPAméricas lists eight risk indicators suggested by the Wal-Mart de Mexico matter.

Considerations of Mexican Culture. The Times article suggests that one of the reasons why Wal-Mart executives in Bentonville did not respond more forcefully to the allegations was that they felt bribery was just part of Mexican culture: “It’s a Mexican issue; it’s better to let it be a Mexican response.... Read more


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