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Last week, there was a court ruling that was issued in a case that has far-reaching implications for individuals who serve on corporate boards or as corporate compliance officers in their companies.

The case, US vs. Trek Leather, investigated the issue of whether or not a member of Trek’s board (the President) could be held jointly liable with the company for a penalty.

Issued on September 16th, the US Court of Appeals for the Federal Circuit reversed an earlier ruling, determining that the individual did cause the importation of undervalued merchandise and can be held liable for gross negligence.

You can read the decision here, but the early takeaway is that where individuals previously could have been shielded from a penalty and prosecution by Customs, that could be off the table if the individual was discovered to have played a material role in causing the violation.