Rolls Royce – English Courts sanction the third Deferred Prosecution Agreement

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Rolls Royce – English Courts sanction the third Deferred Prosecution Agreement

Published 8 febrero 2017

Earlier this month, Lord Justice Leveson approved the third deferred prosecution agreement ("DPA") to be sanctioned by the English Courts, following the culmination of the SFO’s five year investigation into bribery and corruption at Rolls Royce Plc.

Rolls Royce Plc has agreed to pay £671m in penalties to the UK, USA and Brazilian authorities regarding allegations that it paid bribes to secure contracts all over the world between 1989 and 2013.

It will be interesting to see if there are separate proceedings against any individual Rolls Royce directors, following on from the DPA. Lord Justice Leveson confirmed that some of the corruption involved the "senior management and, on the face of it, controlling minds of the company" and so clearly, there is such a possibility.

In the event of any such claims, the directors will look to their D&O Insurers for support. D&O insurers will no doubt want to examine closely the submissions by and conduct of the company, including any admissions made during the investigation process.

A claim by the company against a director for losses it has suffered resulting from the DPA is likely to fall foul of public policy principles preventing an indemnity for fines and penalties (as per the Court of Appeal in Safeway v Twigger).

Authors

William Allison

William Allison

London - Walbrook

+44 (0) 20 7894 6440

Key Contacts

William Allison

William Allison

London - Walbrook

+44 (0) 20 7894 6440

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