Compliance & Ethics

Lockheed Martin, one of the largest defense contractors in the world, has agreed to settle allegations under the False Claims Act by paying $29.74 million. This settlement addresses accusations of defective pricing practices in contracts related to the production and maintenance of its F-35 fighter jets. The settlement adds to the $11.3 million Lockheed Martin already paid to the Department of Defense (DOD) for similar pricing issues in these same contracts.

Google is making a major move to address legal concerns and ramp up its internal governance. The tech giant has agreed to spend $500 million over the next 10 years to overhaul its compliance structure, as part of a settlement with shareholders. This lawsuit, initially filed by a Michigan pension fund in 2021, accused Google of violating antitrust laws, claiming the company’s online advertising practices were monopolistic and anticompetitive.

The European Commission has fined Delivery Hero and Glovo a total of €329 million for their involvement in a cartel that spanned four years across the European Economic Area (EEA). The companies admitted to engaging in anti-competitive behavior that not only limited market competition but also restricted employee opportunities, something that’s never been sanctioned before in EU antitrust history.

In a move that could reshape the landscape of crypto asset regulation in Europe, the European Banking Authority (EBA) has released the final technical package for version 4.1 of its reporting framework. This package, which builds on earlier drafts and incorporates stakeholder feedback, marks a pivotal step in ensuring the efficient centralization of financial data and reinforcing the EU’s commitment to transparency and supervision.

Three of the UK's largest gas distribution operators (Cadent Gas Limited, Scotland Gas Networks, and Southern Gas Networks) are collectively paying £8 million into Ofgem's Energy Industry Voluntary Redress Fund after failing to meet essential safety targets for responding to gas emergencies. The penalty follows an investigation into missed response times that could have put public safety at risk.

Thames Water has been slapped with a record-breaking fine of £122.7 million after two separate investigations revealed serious breaches of regulations. The penalty, the largest ever imposed by Ofwat, includes a £104.5 million fine for failures related to its wastewater operations, alongside an £18.2 million fine stemming from improper dividend payments. The fines will be paid by Thames Water and its shareholders, not by customers, marking a significant step in holding the water utility accountable for its mismanagement.

In my previous article, The Integrity Imperative: Rethinking Compliance in an Era of Relentless Change, I explored the shifting nature of compliance in today’s fast-evolving regulatory environment. As we face a global landscape where laws change by the minute, organizations must rethink how they manage compliance—not just as a set of rules to follow, but as a core function rooted in the organization’s values and integrity. This article continues that conversation, diving deeper into how compliance must evolve from a static function to a dynamic, values-driven imperative.