Russian Telecom Company Hit with FCPA-Related Securities Suit

There is no private right of action under the Foreign Corrupt Practices Act. However, regulatory enforcement actions under the FCPA by U.S. government authorities can and often does result in massive fines and penalties. When companies subject to FCPA enforcement are compelled to pay these penalties they often then hit with follow-on civil lawsuits arising out of or based on the anti-corruption enforcement action. In the most recent example of this anti-corruption enforcement and follow-on civil litigation sequence, earlier this week a plaintiff shareholder filed a securities class action lawsuit filed against a U.S.-listed Russian telecom company that was the subject of both criminal and civil FCPA enforcement actions that recently resulted in the company’s agreement to pay substantial fines and penalties.   Background Moscow-based Mobile Telesystems PJSC (MTS) is the largest mobile telecommunications company in Russia. The company was the subject of both a U.S.…

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