A federal judge dismissed a case against Parker Drilling in which a shareholder accused executives of bribing officials in Kazakhstan and Nigeria.
The shareholder filed the federal complaint against the Delaware-based company and thirteen of its directors and officers for violating the FCPA and SEC guidelines. The complaint alleged that the company participated in illegal activities abroad in order to boost revenues. As a result of the complaint, the company allegedly came under the scrutiny of the SEC and the DOJ, and launched its own multimillion-dollar internal investigation.
Parker and its officials argued that the shareholder failed to take his claims to the board of directors before filing suit, and did not demonstrate that such actions would have been futile. Parker also claimed that the complaint lacked specifics as to each official’s participation in or knowledge of the alleged wrongdoing. The case was dismissed without prejudice, giving the shareholder twenty-one days to file an amended complaint.