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Expert Analysis

A Troubling Disregard For FCPA's Business Nexus Element

Law360, New York ( February 18, 2015, 1:18 PM EST) -- The U.S. Securities and Exchange Commission in late October settled charges against Layne Christensen Co. for various violations of the Foreign Corrupt Practices Act. While a relatively unremarkable case at first glance, the SEC's charges against Layne Christensen reflect a troubling approach by enforcement agencies to disregard the "business nexus element" of the FCPA's anti-bribery provisions. These recent practices appear to contradict the Fifth Circuit's opinion in United States v. Kay and create greater uncertainty as to the scope of the statute....

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