Hyperdynamics Corp (HDYNQ)

[TOB]

It's not so cut and dry as that.

The DOJ can't do anything to HDY that happened over five years ago. The statute is very clear on completed acts and the statute of limitations is 5 years. -spacecityTX

First off, to challenge the DOJ on Statute Of Limitation (SOL) basis, HDY has to first be criminally indicted. No sensible CEO is going to let this happen, so they will cooperate and even wave SOL as a defense to demonstrate they are cooperating.

Talking to the DOJ about SOL is not cooperating and invites the big stick. HDY is not spending $40K a day for an attorney to say: "hey, you've no case due to SOL"

Just the indictment could be game over for HDY in Guinea as the clock is ticking on the concession and a criminal indictment would not resolve quickly if defended against.

Secondly, conspiracy can toll the SOL to the most recent such event.

But the second issue can be dismissed because of the first. FCPA defense is all about cooperation and resolution, not a judicial outcome. That is, they are resolved with fines without FCPA bribery charges. No charge = no SOL defense.

[...]one of first steps during a corporate disclosure of FCPA issues [...] is to enter into a tolling agreement or to waive any statute of limitations defenses.

AKA: The Facade of FCPA Enforcement

If you dig into the details of most corporate FCPA enforcement actions you quickly discover that the alleged conduct at issue occurred 5-7 years, 7-10 years, and in some instances, 10-15 years prior to the enforcement action.

[...]

Simply put, because in corporate FCPA enforcement actions the fundamental black-letter legal principle of statute of limitations seems not to matter. Granted counsel for a company under FCPA scrutiny based on conduct beyond the limitations period can argue about statute of limitation defenses around conference room tables behind closed doors in Washington, D.C. However, like with other FCPA issues, to truly challenge the enforcement agencies first requires that the company be criminally or civilly charged, something few corporate leaders are willing to let happen.
-Link

See also: Here