Healthcare Companies Archives

Philips Joins The Corporate FCPA Repeat Offender Club

By Mike Koehler on May 11, 2023 in 2023 Enforcement Action, China, Distributor Issues, Foreign Issuers, Healthcare Companies, Philips, SEC Enforcement Action, Third Parties

The Foreign Corrupt Practices Act corporate repeat offender club is getting so large, that it really is not all that exclusive.

In 2013, Koninklijke Philips Electronics N.V. (“Philips”), a Netherlands-based company with shares listed on the New York Stock Exchange, resolved a $4.5 million FCPA enforcement action concerning conduct in Poland. (See here for the prior post).

In resolving the matter, Philips consented to entry of the Order prohibiting future FCPA violations.

Yesterday, the SEC announced that Philips agreed to pay “more than $62 million to resolve charges that it violated the FCPA” with respect to conduct related to its sales of medical diagnostic equipment in China.”

The Largest FCPA Enforcement Actions Involving Healthcare Related Companies

By Mike Koehler on May 10, 2022 in FCPA Statistics, Healthcare Companies, Healthcare Products

In large part due to the expansive FCPA enforcement theory that physicians, lab personnel and others associated with most foreign healthcare systems are “foreign officials” under the FCPA (first brought to the FCPA context in 2002 – see here for the prior post), healthcare related companies have resolved numerous FCPA enforcement actions.

This post highlights the twenty largest FCPA enforcement actions (as measured by settlement amount) involving healthcare related companies (broadly speaking pharmaceutical, medical device, life sciences, and diagnostic companies as well as those selling health related products).

As indicated by the below list, the top three enforcement actions involve foreign companies.

Stericyle Resolves A Net $59 Million FCPA Enforcement Action

By Mike Koehler on April 21, 2022 in 2022 Enforcement Action, Argentina, Brazil, DOJ Enforcement Action, Foreign Official, Foreign Officials, Healthcare Companies, Healthcare Providers As Foreign Officials, Merger Issues, Mexico, SEC Enforcement Action, Stericycle, Third Parties, Uncategorized

Stericycle (an Illinois based medical waste disposal company) has been under FCPA scrutiny since mid-2017 (See here).

As highlighted here, approximately two months ago the company disclosed that it had “reached agreements in principle with the DOJ and SEC.” Specifically, Stericycle disclosed:

Yesterday, the DOJ and SEC announced (here and here) a parallel FCPA enforcement action against Stericycle.

The DOJ enforcement action involved this criminal information charging Stericycle with two counts of conspiracy to violate (1) the FCPA’s anti-bribery provisions, and (2) the FCPA’s books and records provision. The criminal charges were resolved via this deferred prosecution agreement pursuant to which Stericycle agreed to pay a net $35 million criminal penalty.

The SEC enforcement action involved this administrative order finding that Stericycle violated the FCPA’s anti-bribery, books and records, and internal controls provisions pursuant to which the company agreed to pay a net approximate $24 million in disgorgement and prejudgment interest.

Former DOJ FCPA Unit Chief Calls On Enforcement Agencies To Consider Domestic “Safe Harbors” In FCPA Matters Involving Life Sciences And Healthcare Companies

By Mike Koehler on February 9, 2022 in FCPA Reform, Healthcare Companies

It is as predictable as the sun rising in the east and dogs barking.

A former DOJ or SEC enforcement official leaves the government for private practice and criticizes certain aspects of FCPA enforcement and/or make recommendations for FCPA reform.

Patrick Stokes (Gibson Dunn and the DOJ’s former FCPA Unit Chief as well as the DOJ’s principal representative at the OECD Working Group on Bribery) is the lead author of this recent article published in Health Lawyer titled “Safe Harbors (And Other Strategies) For Life Sciences And Healthcare Companies In the International Anti-Corruption Storm.”

In it, Stokes and his co-authors call on the FCPA enforcement agencies to consider domestic “safe harbors” in FCPA matters involving life sciences and healthcare companies.

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Philips Joins The Corporate FCPA Repeat Offender Club

The Largest FCPA Enforcement Actions Involving Healthcare Related Companies

Stericyle Resolves A Net $59 Million FCPA Enforcement Action

Former DOJ FCPA Unit Chief Calls On Enforcement Agencies To Consider Domestic “Safe Harbors” In FCPA Matters Involving Life Sciences And Healthcare Companies

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