Quimbee logo
DMCA.com Protection Status

In the Matter of Alcoa, Inc.

File No. 3-15673

Case BriefRelatedOptions
From our private database of 30,900+ case briefs...

In the Matter of Alcoa, Inc.

Securities and Exchange Commission

File No. 3-15673

Facts

Alcoa, Inc. (defendant) was a United States-based manufacturer that refined alumina, a substance used to make aluminum. Alcoa’s alumina business operated through multiple subsidiaries, including Alcoa of Australia and Alcoa World Alumina (collectively, the subsidiaries). Between 1989 and 2009, the subsidiaries did business with Aluminium Bahrain B.S.C. (Alba), an aluminum manufacturer owned by the Kingdom of Bahrain and controlled primarily by the Royal Family of Bahrain. The subsidiaries worked with a consultant (Consultant A) to make sales of alumina to Alba. Alba was one of Alcoa’s largest alumina purchasers, buying almost 20 million metric tons of alumina over the relevant period of time. Over the course of the relationship between the subsidiaries and Alba, Alba complained that it was paying too much for alumina. To prevent losing Alba’s business, the subsidiaries decided to do business according to norms in the Middle East. The subsidiaries began supplying alumina through Alumet, a shell corporation owned by Consultant A, and paid Consultant A a commission fee. Consultant A would then use the commission fees to bribe the Royal Family of Bahrain to purchase the alumina. Consultant A also received a line of credit from Alcoa in order to purchase the alumina before receiving a payment from Alba. As a result of the arrangement, Alcoa facilitated Consultant A and the Royal Family of Bahrain’s foreign bribery scheme, resulting in up to $110 million in corrupt payments to officials in Bahrain. The Securities and Exchange Commission (SEC) (plaintiff) instituted an action against Alcoa alleging that Alcoa violated the Foreign Corrupt Practices Act by indirectly paying bribes to Bahraini officials. The SEC argued that, though no officer of Alcoa knowingly engaged in the bribery scheme, Alcoa facilitated the scheme by ignoring red flags and failing to conduct due diligence to ensure that there was a legitimate business purpose for hiring Consultant A to act as a middleman for its business with Alba.

Rule of Law

Issue

Holding and Reasoning (Per curiam)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 551,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.

    Unlock this case briefRead our student testimonials
  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.

    Learn about our approachRead more about Quimbee

Here's why 551,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 30,900 briefs, keyed to 984 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Access this case brief for FREE

With a 7-day free trial membership
Here's why 551,000 law students have relied on our case briefs:
  • Reliable - written by law professors and practitioners, not other law students
  • The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents
  • Access in your class - works on your mobile and tablet
  • 30,900 briefs - keyed to 984 casebooks
  • Uniform format for every case brief
  • Written in plain English - not in legalese and not just repeating the court's language
  • Massive library of related video lessons - and practice questions
  • Top-notch customer support

Access this case brief for FREE

With a 7-day free trial membership