Matthew Reinhard Quoted Regarding DOJ Opinion Release on M&A Successor Liability in Global Investigations Review

"DoJ reassures companies fearing M&A successor liability"
Global Investigations Review
11.17.14Matthew Reinhard was quoted regarding the recent U.S. Department of Justice (DOJ) opinion release, which says that companies that buy non-U.S. businesses do not have liability for pre-acquisition bribery if the misconduct occurred outside of the U.S. and did not involve U.S. nationals. The opinion, released in response to an April 2014 request from a U.S. consumer products company seeking to acquire a foreign business suspected of making improper payments, was "incongruent" and a "surprising" comment from the DOJ, Reinhard said, as the agency would have no jurisdiction over the pre-acquisition bribery, and the decision to acquired tainted assets should be irrelevant to the agency's decision on whether to prosecute. He added that seeking clarification from the DOJ is always risky. "You don't know the response you are going to get, and it could be a bad one or not the response you were hoping for, then you're in trouble. And you never know how long it will take the DOJ to reply," he said.
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