The US Securities and Exchange Commission (SEC) recently
entered into its first ever deferred prosecution agreement
(DPA) with Tenaris, a Luxembourg steel pipe manufacturer, in
connection with allegations that Tenaris violated the US
Foreign Corrupt Practices Act (FCPA) by bribing Uzbekistan
The US Department of Justice simultaneously announced that
it had entered into a non-prosecution agreement with Tenaris
under which the company would pay a $3.5 million penalty.
The SEC's DPA with Tenaris is an important milestone in the
agency's efforts to foster cooperation under its recent
cooperation initiative, and the DPA is a significant
development for foreign issuers and others to consider when
navigating an SEC enforcement investigation or determining
whether to self-report a potential US securities law violation
to the SEC.
A broad initiative The SEC's DPA with Tenaris is the result
of its cooperation initiative announced in early 2010, which
built upon the analytical framework...