Selendy Gay partner Temidayo Aganga-Williams was quoted in Global Investigations Review examining the potential consequences of a whistleblower lawsuit filed against Freepoint Commodities. The company is currently subject to a deferred prosecution agreement (DPA) with the U.S. Department of Justice related to foreign bribery allegations.
The lawsuit, filed by a former employee, includes claims of insider trading and retaliation. If proven, the conduct could raise concerns about whether Freepoint is in compliance with its obligations under the DPA.
Aganga-Williams, a former federal prosecutor, noted that similar allegations would typically carry significant risk for a company under a DPA. However, he explained that the current regulatory landscape may reduce the likelihood of a strong government response in this case.
“Historically, a company in Freepoint’s position would likely be incredibly concerned if it was under a DPA of this scope and had these allegations of market manipulation coming out,” Aganga-Williams said. “This retaliation complaint, although serious in its implications, may not have an impact on the original DPA based on the DOJ’s retreat from FCPA enforcement.”
Read the full article in Global Investigations Review (subscription required).
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