Recent DOJ FCPA Opinions Provide Guidance on Preacquisition Due Diligence and Promotional Expenses

The Department of Justice (DOJ), through its Foreign Corrupt Practices Act (FCPA) Opinion Release Procedure, recently provided guidance on two important issues facing companies conducting business overseas. First, on June 13, DOJ released an opinion addressing successor liability for a U.S. company acquiring a foreign company where it was unable to perform satisfactory preacquisition FCPA due diligence due to foreign law restrictions. Second, on July 11, DOJ addressed whether a company could make certain payments to Chinese journalists who are employees of state-owned agencies as part of reasonable expenses incurred in promoting the company’s products and services. These two opinions provide valuable guidance to companies facing similar issues.

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