Issue link: https://digital.shearman.com/i/1265921
UNUSUAL DEVELOPMENTS FCPA DIGEST July 2020 33 Keppel Offshore & Marine Of note, there is certain overlap between securities fraud claims and RICO claims, and federal legislators have sought to address that overlap in the PSLRA. PSLRA prohibits RICO claims alleging securities fraud, except where the RICO claims are brought against a person criminally convicted of the conduct in question. This PSLRA bar to RICO actions proved too difficult to overcome for EIG Energy Fund, which sued Keppel Offshore & Marine in 2018 under RICO. 20 As we discussed in previous Trends and Patterns publications, Keppel entered into a DPA with the DOJ in 20 EIG Energy Fund XIV, L.P. v. Keppel Offshore & Marine LTD, No. 18-cv- 01047 (S.D.N.Y. 2018). 2017, in which it agreed to pay $422 million as part of a global settlement with authorities in the U.S., Singapore, and Brazil. In May 2020, the district court dismissed EIG's RICO claims, noting that the DPA did not equate to a criminal conviction. As with restitution claims under the MVRA, which also require a criminal conviction, this bar to certain securities claims under RICO serves as further indication of the importance of NPAs and DPAs in FCPA enforcement actions.