Oct. 23, 2024

John Deere Settlement: M&A Integration, Commercial Bribery and Compliance Remediation

The recent settlement between Deere & Company, which does business as John Deere (Deere), and the SEC shows that failing to integrate a newly acquired subsidiary can create significant risk. In this second article unpacking the Deere settlement, we discuss the lessons it offers for post-acquisition integration, the SEC’s focus on Deere’s commercial bribery and how the company remediated its compliance issues. The first article examined the internal controls failures that allowed Deere’s subsidiary in Thailand to entertain Thai officials at massage parlors and send them on European vacations. See “Safe Harbor Policy Seeks to Encourage Self-Reporting of Issues in M&A Transactions” (Oct. 11, 2023).

What CCOs Should Know About the DOJ’s Efforts to Curtail Criminal Use of AI

The DOJ is alert to how artificial intelligence (AI) can supercharge crime. Earlier this year, Deputy Attorney General Lisa Monaco said AI adds danger to existing offenses, warranting tougher penalties, and noted the DOJ’s use of the technology to fight crime along with new projects in which experts would advise on the DOJ’s responsible use of AI. The DOJ also updated its Evaluation of Corporate Compliance Programs in late September, with passages instructing prosecutors to consider a company’s AI use and management of its risks. This article examines the DOJ’s recent moves regarding AI, with insights from Paul Weiss partner John Carlin about the effects AI can have on crime, its detection and corporate compliance. See our three-part series with answers to top questions about the E.U. AI Act: “Reach and Unique Requirements” (May 22, 2024), “Risk Tiers and Big-Player Transparency” (Jun. 5, 2024), and “Practical Steps and What’s Next” (Jun. 19, 2024).

FTC Signals Stricter Children’s Enforcement in NGL Labs Settlement: Compliance Lessons

The Federal Trade Commission (FTC) introduced novel requirements around online services to individuals under 18 in its recent settlement with NGL Labs. Given the egregious missteps by NGL Labs, it may be tempting for companies to overlook this case as an outlier, but it offers some notable takeaways. This second installment of a two-part article series on the significant aspects of the NGL Labs case covers the FTC’s application of the substantial injury standard, enforcement coordination trends and compliance lessons, with insights from Alston & Bird, Covington & Burling, Hunton Andrews Kurth, Orrick and ZwillGen. Part one examined key violations and settlement terms as well as what the resolution signals about the FTC’s children’s privacy enforcement. See “Fostering Collaboration and Communication Between Security and Compliance” (Mar. 27, 2024).

Investigations, Compliance Partner Joins Potomac Law Group

Potomac Law Group has announced that investigations and compliance lawyer Daanish Hamid has joined the firm as a partner in Washington, D.C. He arrives from global law firm Rimôn.