November 2016
Embraer SA, Brazil’s flagship aerospace manufacturer and a worldwide competitor across various aviation markets, experienced first-hand the scope and reach of the Foreign Corrupt Practices Act (FCPA). Embraer agreed to pay $205 million to settle allegations by the U.S. Department of Justice (DoJ) and the Securities and Exchange Commission (SEC) that the company paid millions in bribes to officials in other countries and falsified accounting records.

However, this is not your run-of-the-mill settlement with American authorities. Companies like Embraer should take notice. The FCPA is lethal for domestic and foreign actors not because of stealth or unfamiliarity – most sophisticated businesses that are directly or indirectly involved in U.S. commerce are aware of the FCPA. Rather, the danger lies in the fact that many companies fail to appreciate the vast scope of the FCPA and the aggressive pivot by the DoJ to increase FCPA prosecutions and hold executives civilly and criminally responsible.

To view the full alert, click here.