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In the Courts
Utility Company Convicted for Regulatory Violations Based on Corporate Collective Knowledge
On Aug. 9, 2016, Pacific Gas & Electric Co. (PG&E), a California corporation that provides natural gas and electric services, was convicted of five counts of violating the federal Pipeline Safety Act (PSA), along with one count of obstructing an investigation by the National Transportation Safety Board (NTSB), in connection with a high-profile 2010 pipe explosion near San Francisco. United States v. Pac. Gas & Elec. Co., 2016 BL 240175, No. 3:14-cr-00175 (N.D. Cal., Aug. 9, 2016) (Jury Verdict) (PG&E). The conviction is significant because the government relied on a “collective knowledge” theory to pursue corporate criminal liability for “willful” violations of federal regulations, without establishing the “guilty mind” of any particular employee.
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