Settlements In Brief: Reduced Fine For Odebrecht And Deferred Prosecution For Tesco

Enforcement actions by criminal and supervisory authorities are settled regularly. In light of these developments, companies are advised to take appropriate measures. This month we once again highlight the 2016 settlement of Odebrecht and its petrochemical affiliate, Braskem. A US federal judge recently reduced Odebrecht's initial fine from USD 260 million to USD 93 million because of its alleged inability to pay. This means that the combined Odebrecht/Braskem settlement is no longer ranked fifth in the top ten Foreign Corrupt Practices Act enforcement list. We also highlight the recent Tesco Stores Limited settlement with the Serious Fraud Office (SFO). The SFO entered into a Deferred Prosecution Agreement (DPA) with the Tesco subsidiary in connection with false accounting between February and September 2014. Tesco Stores is the second company (after Rolls-Royce) to obtain a DPA despite allegedly failing to self-report the misconduct to the SFO.