- Antitrust Compliance: Confronting Cartels Proactively
- April 27, 2004 | Author: Gary L. Halling
- Law Firm: Sheppard, Mullin, Richter & Hampton LLP - San Francisco Office
Why are cartels a growing concern for directors today, and what preventive steps can we take?
With increasing coordination of the U.S. Department of Justice's (DOJ), European Union's and other jurisdictions' international antitrust cartel prosecutions, companies are facing crippling fines ($500 million in one U.S. case alone) and massive treble-damage civil liability. Directors also may have personal liability for knowingly failing to confront and prevent such corporate catastrophes. Preventative steps include antitrust audits and compliance programs targeted to key individuals. If wrongdoing comes to light, U.S. fines and jail time can be avoided by prompt and truthful reporting as part of DOJ's amnesty program.