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Corruption & Litigation

 

 

 

Corruption can take different forms and impact companies in various ways. The best way to ensure corporate assets are not being misused is to have an effective internal control system that monitors employee behavior to identify instances of bribery, illegal donations, intimidation, dishonest marketing, and insider trading within the firm. Every company should have documented internal policies and training programs to educate employees on the importance of conducting all business transactions in accord with the promotion of fair and open competition in the marketplace.

Methodology
 

Our analytical framework seeks to assess our clients’ portfolio companies to determine if those companies have been subject to class-action, derivative or civil litigation that could impair their brand or lead to costly litigation. We research public information sources to determine if a company has been subject to any civil or criminal proceedings in the last three years or if a company, subsidiary or joint-venture has been subject to allegations of corruption, bribery or fraud.  Evaluative factors for this category include:

  • Evidence of bribery or corruption
  • Allegations of anti-trust activities
  • Civil or criminal litigation in the past three years
  • Lobbying and influence peddling
  • Tax evasion
  • Corporate spying

Through this evaluation, we identify a history of events that can impact firm value and shareholder returns.