Criminal Liability -- 2017



DeCoster v. United States   (U.S. Supreme Court)

Prison sentence under Responsible Corporate Officer Doctrine

The NAM filed a brief with the U.S. Supreme Court in support of two corporate officers who were subject to criminal liability solely as a result of their position. Jack and Peter DeCoster, respectively the owner and Chief Operating Officer of Quality Egg LLC, pled guilty as Responsible Corporate Officers to violating the Food, Drug, and Cosmetic Act (FDCA) by unknowingly introducing eggs containing salmonella into interstate commerce. This standard imposes strict liability on C-level executives and holds executives liable for every unwitting decision by employees. The NAM’s brief argued that the Court should reconsider the Park standard, which imposes criminal liability on managerial officers regardless of their knowledge or participation in the FDCA violation. Unfortunately, the Supreme Court declined to review the case.


Related Documents:
NAM amicus brief  (February 10, 2017)
NAM amicus brief  (July 28, 2015)