Significant Market Reverberations to PLA and SOE Hacking Scandal

The public report issued by Mandiant in February 2013 and the charges filed by the U.S. Justice Department in May 2014 have exposed SOEs implicated in this scandal to potential market scrutiny and penalty due to violations of good faith market principles.  The emerging reality of certain contracts, joint ventures and other agreements having been achieved by cheating partners, clients and customers is likely to cause significant reverberations and opportunities for deterrence and behavior modification.  As the identities of the SOEs implicated in paying the PLA for their hacking services come out, this effect will likely become significantly enhanced.