Inside Track: Which Countries Should You Worry About? Plus, Will Antitrust Leniency Die?
The anti-bribery group TRACE International released its annual report shows the countries with the lowest and highest risk of corruption. Also, applications for antitrust leniency are in decline, which is concerning antitrust defense lawyers.
November 14, 2019 at 06:05 PM
7 minute read
Welcome back to Inside Track!
Elena Borisenko, the general counsel of Moscow-based Gazprombank, said she is focused on creating a more efficient legal department through technology and by further integrating legal with the business.
"If you want to be efficient and you have multiple tasks you have to be sure that you're not wasting time on resources that do not require a legal background," Borisenko said.
She explained the bank is still working on a way to automate all routine processes in the legal department.
"We are asking our IT guys to make the legal tech programs for us to complete tasks automatically," Borisenko said.
Borisenko also said she created a legal hub outside of Moscow that does legal work for the entire company.
"They have a strong law school and high-level lawyers there. We took the functions of supporting transactional business and put them there," Borisenko said.
The move turned out to be cost-efficient.
"We are confident that they are all high-level lawyers who provide support throughout the entire country," Borisenko said. "You can't always be sure that in every city you will have high-level lawyers. There you have the best practice. This is possible now with technology."
How do you feel about creating centralized hubs of in-house lawyers that work with the entire company? Let me know by emailing me at [email protected].
|
What's Happening
|Risky Countries That Worry General Counsel
The anti-bribery group TRACE International released its annual report on the risk of corruption on Tuesday. The report shows the countries with the lowest risk of corruption are Norway, Denmark, Sweden and Finland. However, the countries that companies should be wary of doing business with are South Sudan, Yemen, Venezuela and North Korea.
TRACE president Alexandra Wrage said more countries are getting on board with compliance and anti-bribery initiatives.
"The good news from in-house lawyers is that there's less resistance to due diligence, training and other components of a robust anti-bribery program," Wrage said. "Employees and business partners now expect these measures and so take them in stride."
The TRACE Bribery Risk Matrix, Wrage said, can help compliance professionals look at bribery as something more complex than a "simple transaction."
"The response to a bribe demand for a senior official in a thuggish, resource-rich dictatorship will be different than the response to a bribe demand from a low-level bureaucrat in a rural town in Southeast Asia," Wrage said. "The levels of corruption in both countries might be similar, but the response to each will be different."
'Death of Antitrust Leniency'
Applications for antitrust leniency are in decline, which is concerning antitrust defense lawyers. John Roberti, an antitrust lawyer and partner at Allen & Overy in Washington, D.C., told Corporate Counsel this is because critics of the application say the program is not working as intended. Roberti said companies should consider three things when deciding whether to file an application.
➤ Corporate leniency is important for companies who may have identified a violation of law. The application was created to help identify cartel activity and to give companies an incentive to cooperate with plaintiffs in civil cases.
➤ Different risks and costs have emerged. "The cost of the leniency application is increasing because to have an effective one, you have to file a lot of different places and each different regime has a different application. For a multinational, the upfront expense of doing it becomes pretty high. Second, there are now regimes around the world that have introduced the concept of private damages, and that is drastically increasing the risk with a leniency application," Roberti said.
➤ Doing the right thing. The Justice Department needs to consider how the new elements have affected companies' incentives to self-report. "If you have a clear-cut case of noncompliance, companies that want to do the right thing will file for leniency. But where you have a less clear-cut case or a valid defense, the incentive to seek leniency is less clear because of all of these uncertainties."
|
What I've Been Reading
There are 277 cases awaiting general counsel approval at the Federal Labor Relations Authority, according to a report in Fedsmith.com. The authority has gone nearly two years without a general counsel. Catherine Bird has been nominated for the position, but the Senate has not made an effort to confirm her. Because there is no GC at the agency, unions who file complaints against federal agencies cannot have their cases go forward.
The CEO of Parley Pro, Olga Mack, said there are five D's to show whether in-house counsel are effectively managing contracts, according to an opinion piece in Bloomberg Law. The five D's, according to Mack are digitization, decentralization of information, democratization of access, diversity of thought, and disruption. Those D's are how in-house counsel are going to have to adapt to contract management in the future as technology evolves.
Alphabet's board of directors is investigating its executives over inappropriate relationships, according to a CNBC report. Earlier this year, a former in-house attorney at the company, Jennifer Blakely, accused the company's CLO, David Drummond, of leaving her and their child after an affair with another employee.
|
Don't Miss
Tuesday, Nov. 19 – The Practising Law Institute will be hosting a Hot Topics For In-House Counsel event at the group's office in New York City. Topics covered will include developments in legal operations and artificial intelligence, the domestic and international antitrust landscape and intellectual property.
Friday, Nov. 22 – Dinsmore Legal Counsel will be hosting the 2019 In-House and General Counsel Symposium at the Columbus Bar Association in Columbus, Ohio. Topics will include corporate governance, cybersecurity and current trends in money laundering.
Monday, Dec. 2 – The Asian Pacific American Bar Association's Leadership Advisory Council is presenting a General Counsel Career Advice session on climbing the corporate ladder to the top at Buchanan, Ingersoll & Rooney's office in Philadelphia. Speakers will include John Chou, general counsel of Amerisource Bergen; Lola Lin, general counsel of Airgas; and Jen Gerney, a consultant at Spencer Stuart.
|
On The Move
|✦ Energizer ✦ Hannah Kim has become the chief legal officer of the battery maker. She previously worked as the company's assistant general counsel and is replacing Kelly Boss who plans on retiring from her role as general counsel. Boss will serve as executive counsel until next summer.
✦ AccuWeather ✦ Jennifer Chung, who has served as the acting general counsel of the weather service since July, has become the general counsel and chief legal officer of the company. She said she oversees a team of two other lawyers and looks to outside counsel for a large share of the legal work.
✦ CoreLogic ✦ Aaron Henry has been made the chief legal officer of the company as it undergoes an antitrust investigation. He previously served as the general counsel of MoneyGram International Inc. Henry takes over for Arnold Pinkston, who left the company in June.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllInside Track: How 2 Big Financial Stories—an Antitrust Case and a Megamerger—Became Intertwined
Inside Track: Lawyers for Big Tech Give Harris Benefit of Doubt, Despite Pummeling They Took Under Biden
Inside Track: Late-Career In-House Leaders Offer Words to Live by
Inside Track: ESG Movement Hits 'Teenage Years,' Testing Companies' Resolve
Law Firms Mentioned
Trending Stories
- 1Jury Finds Dentons, Ex-Partner Beats Malpractice Claim Over $54 Million Currency Deal
- 2Former Cahill Executive Committee Member, Leveraged Finance Pioneer Dies at 67
- 3State Attorney General Faces Federal Courtroom Test Over Crypto Mining Ban
- 4The Corporate Transparency Act: One Year Later With Deadline Looming
- 5Getting Cameras in Federal Courts Will Take More than Logic
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250