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.