If ... I need to file a proceeding even though I can't prepare the legal costs
2019/ 7/ 2
If ... one day an FBI agent suddenly comes to the company
The "Legal Economics - How to Minimize Fines and Settlements? Legal and Economic Considerations" seminar was held on March 2019, 3 in Tokyo, Japan. Jack Fornaciari, partner at BakerHostetler, and economist Dr. Frederick R. Warren-Boulton were the featured speakers.
Attorney Fornaciari
The seminar consisted primarily of commentary on antitrust status, how to reduce damages, the costs incurred in the case of an investigation, and an effective compliance program for the future. The outline of the seminar contents is introduced below.
■Attorney John R. Fornaciari
In recent years, many Japanese companies have been the subject of investigations by the U.S. government, resulting in indictments or guilty pleas, huge compensation payments, imprisonment of employees, and other criminal penalties. Many of the cases were related to the detection of an auto parts cartel, but now that these government investigations have finally run their course, many companies are being forced to deal with the civil lawsuits (class actions) that follow the criminal cases, and many are paying out huge settlements. Will the U.S. government's antitrust investigations, which have seemingly slowed down, continue to show signs of abating or will the U.S. Department of Justice once again intensify its investigations, triggered by the inspection fraud and data tampering cases that have been making headlines in the media recently? He also discussed how Japanese companies should reduce costs from the perspective of legal defense, such as legal costs in the event of a U.S. government investigation and subsequent civil litigation costs. In many cartel cases, investigations are initiated by amnesty applications, and when a cartel case becomes a target of investigation by the U.S. Department of Justice, agents suddenly arrive one day (known as a "dawn raid") and a decision must be made within 24 hours whether or not to cooperate with the DOJ. The DOJ must be informed of the nature of the cooperation, which must be known to the company as soon as possible, making the discovery process important. The order in which information is provided to the DOJ is crucial.
■ Dr. Frederick R. Warren-Boulton
Dr. Frederick R. Warren-Boulton
Dr. Warren-Boulton explained specific guidelines for calculating "fines", which was often talked about by Attorney Fornaciari, and best practices for minimizing fines. The fine calculation guideline is calculated by multiplying 20% of the transaction amount affected (due to the violation) by the liability score. The multiplier will vary from 0.75 to 4 depending on the nature of the offense, based on the liability score. To minimize this fine, it is effective to reduce the Volume of Commerce (VOC). The smaller the VOC, the lower the payment. In the US proceedings, the seminar was closed with the words that it would be wise to hire an economist immediately, as it is possible to reduce fines and damages by effectively calculating the figures involved in the proceedings.
* This article is a reprint of what was posted on the "FRONTEO LegalTech AI helpful site" on April 2019.
If ... one day an FBI agent suddenly comes to the company
The "Legal Economics - How to Minimize Fines and Settlements? Legal and Economic Considerations" seminar was held on March 2019, 3 in Tokyo, Japan. Jack Fornaciari, partner at BakerHostetler, and economist Dr. Frederick R. Warren-Boulton were the featured speakers.
Attorney Fornaciari
The seminar consisted primarily of commentary on antitrust status, how to reduce damages, the costs incurred in the case of an investigation, and an effective compliance program for the future. The outline of the seminar contents is introduced below.
■Attorney John R. Fornaciari
In recent years, many Japanese companies have been the subject of investigations by the U.S. government, resulting in indictments or guilty pleas, huge compensation payments, imprisonment of employees, and other criminal penalties. Many of the cases were related to the detection of an auto parts cartel, but now that these government investigations have finally run their course, many companies are being forced to deal with the civil lawsuits (class actions) that follow the criminal cases, and many are paying out huge settlements. Will the U.S. government's antitrust investigations, which have seemingly slowed down, continue to show signs of abating or will the U.S. Department of Justice once again intensify its investigations, triggered by the inspection fraud and data tampering cases that have been making headlines in the media recently? He also discussed how Japanese companies should reduce costs from the perspective of legal defense, such as legal costs in the event of a U.S. government investigation and subsequent civil litigation costs. In many cartel cases, investigations are initiated by amnesty applications, and when a cartel case becomes a target of investigation by the U.S. Department of Justice, agents suddenly arrive one day (known as a "dawn raid") and a decision must be made within 24 hours whether or not to cooperate with the DOJ. The DOJ must be informed of the nature of the cooperation, which must be known to the company as soon as possible, making the discovery process important. The order in which information is provided to the DOJ is crucial.
■ Dr. Frederick R. Warren-Boulton
Dr. Frederick R. Warren-Boulton
Dr. Warren-Boulton explained specific guidelines for calculating "fines", which was often talked about by Attorney Fornaciari, and best practices for minimizing fines. The fine calculation guideline is calculated by multiplying 20% of the transaction amount affected (due to the violation) by the liability score. The multiplier will vary from 0.75 to 4 depending on the nature of the offense, based on the liability score. To minimize this fine, it is effective to reduce the Volume of Commerce (VOC). The smaller the VOC, the lower the payment. In the US proceedings, the seminar was closed with the words that it would be wise to hire an economist immediately, as it is possible to reduce fines and damages by effectively calculating the figures involved in the proceedings.
* This article is a reprint of what was posted on the "FRONTEO LegalTech AI helpful site" on April 2019.
