Vinson and Elkins Primer Demystifies the Intricacies of Government Investigations and Civil Litigation of Cartels
PR93266
WASHINGTON and SAN FRANCISCO, Dec. 9, 2021 /PRNewswire=KYODO JBN/ --
Vinson and Elkins released today its Antitrust Cartel Primer (
https://www.velaw.com/insights/winter-2021-2022-antitrust-cartel-primer ) which
provides companies and individuals operating in today's global environment with
a practical resource guide to help them navigate cartel investigations and
follow-on litigatFion. The primer is divided into two parts: part one details
government investigations and part two covers the civil procedures for when an
individual plaintiff sues for damages.
Photo -
https://mma.prnewswire.com/media/1695192/Antitrust_Cartel_Primer_Cover.jpg
There is good reason for executives and their lawyers to hone their knowledge
in the area of antitrust, specifically cartels. Cartel activity, price-fixing
or bid-rigging between companies and other forms of market manipulation is a
risk that is growing with great momentum. Key findings from the report include:
-- From 2011 to 2020, the U.S. Department of Justice (DOJ) filed an
average of 45 cases each year. While there was a general downward
trend in criminal cases filed, the change in administration suggests
there is likely to be a revival in enforcement. The Antitrust Division
has requested a 13% increase to its budget ($88.5 million). Thus far
in 2021, the Antitrust Division has filed more than 15 criminal
antitrust cases.
-- Between 1970 and 1999, roughly 40% of defendants in criminal antitrust
cases were sentenced to prison time, yet that percentage is closer to
64% in the last twenty years.
-- While executives may not end up in jail, their companies may still
exact a price. As of December 2021, the Antitrust Division has
imposed approximately three dozen corporate fines of $100 million
or more and 13 fines of $300 million or more.
-- The DOJ's criminal enforcement efforts target individuals three
times more often than they do corporations. Between 2008 and 2020,
the DOJ prosecuted 620 individuals and only 226 corporations.
-- The U.S. government, which has become increasingly aggressive in its
investigation of antitrust and other matters, commonly starts an
investigation by sending FBI and/or other federal agents to serve a
search warrant. It is now common that the DOJ will work in tandem with
foreign prosecutorial agents, particularly in the European Union, Japan,
Korea, Canada and Brazil. In significant cases, these governments will
attempt to execute simultaneous raids in the U.S. and overseas.
"With the recent changes in the administration and a heightened focus on
antitrust in general, we expect to see an increase in prosecutions in the area
of cartels," said Craig Seebald (
), partner and co-head of litigation at Vinson and Elkins. "The DOJ is expected
to look more closely at anti-competitive behavior and open new grand jury
investigations. Regardless of their industry, companies need to understand the
cartel rules when operating in the U.S. It's imperative that they take steps to
mitigate risks of enforcement and consistently educate their sales, strategy,
HR and other staff members as to what is allowable behavior."
"This Primer grows out of our work defending companies over the last 20 years
in some of the largest and most complex cartel cases," said Matt Jacobs (
), partner and co-head of the firm's White Collar practice. "We have been able
to get great results for our clients, and wanted to share some of our
strategies with a broader audience."
"Companies operating in the U.S. and abroad need to be aware of the intricacies
of how the DOJ enforces violations of cartel laws," said Darren Tucker (
), chair of Vinson and Elkins' antitrust practice group. "Violators of
antitrust laws are subject to significant financial penalties and criminal
sanctions. The DOJ has imposed total criminal fines and penalties exceeding a
billion dollars in some recent years, and we frequently see prison terms of two
years or more for individuals."
The primer illuminates the policies in place to help companies avoid breaking
the law in the first place and those to mitigate potential problems that they
may face if they are accused of wrongdoing. Perhaps most valuable to in-house
counsel, the Cartel Primer provides practical guidance regarding the steps
involved in a government investigation and potential steps companies under
investigation or prosecution should consider. It also describes the process and
potential strategic considerations should a company under investigation be a
party to a "follow-on" civil proceeding by private plaintiffs.
For more insights and to see Vinson and Elkins' full Cartel Primer go to:
https://www.velaw.com/insights/winter-2021-2022-antitrust-cartel-primer
About Vinson and Elkins
For more than 100 years, Vinson and Elkins has provided deep experience in
handling transactions, investments, projects, and disputes worldwide. The firm
is a trusted adviser to clients in the most important industrial and digital
industries. Learn more by visiting www.velaw.com or follow us on Twitter
@VinsonandElkins (
) or connect with us on LinkedIn (
).
For more information, please speak with our media contacts (
).
SOURCE Vinson and Elkins LLP
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