Securities Litigation Partner Discusses SEC's Nonprosecution Agreement with Ralph Lauren

Daily Journal (California) | April.24.2013

This article, about the nonprosecution agreement between the SEC and Ralph Lauren Corp., the first SEC agreement of its kind to deal with Foreign Corrupt Practices Act violations, quotes securities litigation and regulatory enforcement partner Ken Herzinger.

According to the article, attorneys believe the agreement is a clear indication that the SEC is encouraging more self-reporting on FCPA cases.

"The speed with which these companies do an investigation and report the findings to the SEC has a lot to do with whether a nonprosecution agreement is offered. Whether the assistance from a company was substantial, voluntary and timely seem to be the deciding factors in the few cases we have seen thus far," said Herzinger.

While the SEC's stance on cooperation is increasingly clear, the relative dearth of cases that have actually been tried in the area has made it difficult to evaluate when self reporting should occur, he added.

"The reality is, there are not that many [SEC FCPA] cases that have been litigated. So until more cases work their way through the courts, there is very little judicial guidance to go off of," said Herzinger.