I 

112TH CONGRESS 

1ST SESSION H. R. 3531 

To authorize certain private rights of action under the Foreign Corrupt 

Practices Act of 1977 for violations by foreign concerns that damage 

domestic businesses. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 30, 2011 

Mr. PERLMUTTER introduced the following bill; which was referred to the 

Committee on Energy and Commerce, and in addition to the Committee 

on the Judiciary, for a period to be subsequently determined by the 

Speaker, in each case for consideration of such provisions as fall within 

the jurisdiction of the committee concerned 

A BILL 

To authorize certain private rights of action under the Foreign Corrupt Practices Act of 1977 for violations by 

foreign concerns that damage domestic businesses. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Foreign Business Brib5 ery Prohibition Act of 2011’’. 

6 SEC. 2. ACTIONS AUTHORIZED. 

7 Section 104A of the Foreign Corrupt Practices Act 

8 of 1977 (15 U.S.C. 78dd–3) is amended— 


smartinez on DSK6TPTVN1PROD with BILLS
2 

•HR 3531 IH

1 (1) by redesignating subsection (f) as sub2 section (g); and 

3 (2) by inserting after subsection (e) the fol4 lowing: 

5 ‘‘(f) PRIVATE RIGHTS OF ACTION AUTHORIZED.— 

6 ‘‘(1) AUTHORIZED PLAINTIFFS.—Any foreign 

7 concern that violates subsection (a) shall be liable in 

8 an action brought in accordance with this subsection 

9 in any court of competent jurisdiction to any issuer 

10 that is subject to section 30A of the Securities Ex11 change Act of 1934, domestic concern that is subject 

12 to section 104 of this Act, or other United States 

13 person that is damaged by the violation of sub14 section (a) of this section for damages caused to 

15 such issuer, domestic concern, or other person by 

16 the violation. 

17 ‘‘(2) PROOF OF DAMAGES.—For purposes of 

18 this subsection, a plaintiff in an action under this 

19 subsection must allege and prove that— 

20 ‘‘(A) the defendant foreign concern vio21 lated subsection (a); and 

22 ‘‘(B) the defendant foreign concern’s viola23 tion of subsection (a)— 


smartinez on DSK6TPTVN1PROD with BILLS
3 

•HR 3531 IH

1 ‘‘(i) prevented the plaintiff from ob2 taining or retaining business for or with 

3 any person; and 

4 ‘‘(ii) assisted the foreign concern in 

5 obtaining or retaining such business. 

6 ‘‘(3) MEASURE OF DAMAGES.— 

7 ‘‘(A) IN GENERAL.—The damages which a 

8 plaintiff may obtain in an action under this 

9 subsection may be equal to the higher of the 

10 two following amounts that are established by 

11 the plaintiff’s allegations and proof: 

12 ‘‘(i) The total amount of the contract 

13 or agreement that the defendant gained in 

14 obtaining or retaining business by means 

15 of the violation of subsection (a). 

16 ‘‘(ii) The total amount of the contract 

17 or agreement that the plaintiff failed to 

18 gain because of the defendant’s obtaining 

19 or retaining business by means of the vio20 lation of subsection (a). 

21 ‘‘(B) TREBLE DAMAGES.—In assessing 

22 damages under subparagraph (A), the court 

23 shall enter judgment for three times the 

24 amount determined under clause (i) or (ii) of 

25 such subparagraph (whichever is greater), toVerDate Mar 15 2010 01:35 Dec 01, 2011 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3531.IH H3531

smartinez on DSK6TPTVN1PROD with BILLS
4 

•HR 3531 IH

1 gether with a reasonable attorney’s fee and 

2 costs, for any violation of subsection (a). 

3 ‘‘(4) EXCEPTION FOR ROUTINE GOVERNMENTAL

4 ACTION.—The exception in subsection (b) shall apply 

5 to an action under this subsection. 

6 ‘‘(5) AFFIRMATIVE DEFENSES.—The affirma7 tive defenses in subsection (c) shall apply to an ac8 tion under this subsection. 

9 ‘‘(6) CONTRIBUTION.—Every person who be10 comes liable to make payment under this subsection 

11 may recover contribution as in cases of contract 

12 from any person who, if joined in the original suit, 

13 would have been liable to make the same payment. 

14 ‘‘(7) STATUTE OF LIMITATIONS.—No action 

15 shall be maintained to enforce any liability created 

16 under this subsection unless brought within 3 years 

17 after the discovery of the facts constituting the 

18 cause of action and within 6 years after such cause 

19 of action accrued. 

20 ‘‘(8) DEFINITIONS.— 

21 ‘‘(A) FOREIGN CONCERN.—For purposes 

22 of this subsection, the term ‘foreign concern’ 

23 means any person other than an issuer that is 

24 subject to section 30A of the Securities Ex25 change Act of 1934, a domestic concern that is 


smartinez on DSK6TPTVN1PROD with BILLS
5 

•HR 3531 IH

1 subject to section 104 of this Act, or another 

2 United States person. 

3 ‘‘(B) UNITED STATES PERSON.—The term 

4 ‘United States person’ has the meaning given 

5 such term in section 104(i)(2) of this Act.’’. 

Æ 


smartinez on DSK6TPTVN1PROD with BILLS