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why did LH go to the US Justice Department
If you do business in the US, have a base or office in the US, a joint venture with US citizens or companies or meet any other of a load of other criteria, then you are covered by US law & liable to prosecution under their legal system.
The penalties can be very severe for dodgy dealing & going out of business can be the least of your concerns, depending on which of the various laws you've broken. Try having a google at Foreign & Corrupt Practices......
Well, it looks like that by going to the US, they (LH) were not only looking to minimise their own liabilities (as they were part of the scam), but maximise other airline's penalties at the same time. I don't think that in Europe a prison term would be a possibility.