Morgan Lewis – In recent years, the US Department of Justice (DOJ) and US Securities & Exchange Commission (SEC) have further defined their anti-corruption due diligence and disclosure expectations of acquiring companies pre- and post-acquisition. Notwithstanding the government’s efforts to clarify expectations and promote greater transparency, acquiring companies remain at risk of inheriting liability as successors (or joint venture partners) and may face enforcement actions should they not swiftly discover and stop any misconduct from continuing post-acquisition. In other words, what you don’t know can at times hurt you, but the risk of pain significantly increases when you do know but don’t take steps to fix the inherited problems.
Source:
Morgan Lewis: Due Diligence, Ethics, and Compliance Considerations for Dealmakers
