Netflix’ Former VP accused of accepting kickbacks
The anti bribery regime is gaining traction. Only this week Netflix began legal proceedings in the California State Court against a former Vice President who is now Yahoo’s Chief Information Officer. It is alleged that he, among other things, breached his fiduciary duties by taking kickbacks from two companies. He arranged the Netflix contracts with each of these companies and allegedly received secret commissions from the monthly fees Netflix paid to each them.
In the UK, employers have the ability to use the civil courts to pursue current and former directors who have received kickbacks. They will hold payments received in this way on trust and be required to pay the full amount to the employer. This will be in addition to any criminal or regulatory offences they may have committed. This should not be seen therefore as a sensational news story in the US, as we expect to see more similar cases on this side of the pond.