Israeli Companies in the Crosshairs for Violation of the U.S. Foreign Corrupt Practices Act (FCPA)
Categories: Capital Markets, Corporate and M&A
For any Israeli company that has a U.S. subsidiary, lists its shares on a U.S. exchange, or trades its foreign shares on U.S. exchanges (“ADRs”), knowledge of the U.S. Foreign Corrupt Practices Act (“FCPA”) is a must. Running afoul of this law can bring serious consequences, as Israeli real estate development company Elbit Imaging Ltd. recently learned. Charged with violating the FCPA in several transactions, on March 9, 2018 Elbit paid a $500,000 fine to the U.S. Securities and Exchange Commission (“SEC”) to settle the matter. It could have been worse.
