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This year has seen a wave of proposed bills in state legislatures across the United States aimed at regulating foreign-influenced political activity at the state level. While stylized to mirror portions of the Foreign Agents Registration Act (FARA), in reality, many of these laws are broader than FARA and lack the core exemptions that companies may have grown accustomed to relying upon.
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By aligning with the Supreme Court’s reasoning in Van Buren v. United States,the Third Circuit emphasizes that the CFAA should not serve as a catchall enforcement tool for employers. The decision draws a clear boundary between criminal conduct and employment disputes, reinforcing that the CFAA is not a backdoor mechanism for punishing employees.
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A functioning enforcement environment must prevent fraud without unduly hindering good business. While the future of FCA enforcement unfolds, all companies can proactively limit their risk by continuing to maintain robust compliance programs to detect and prevent misconduct.
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Phillips is another in a line of decisions that expansively permit U.S. prosecutions for conduct taking place overseas, while paying little heed to the extra hardships imposed on defendants forced to defend themselves in a foreign courtroom.
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A powerful incentive to rat out corporate misconduct waned in the latest fiscal year, as payouts under the U.S. Securities and Exchange Commission’s Whistleblower Program fell to their lowest level in six years, a Law.com analysis found.
