Stericyle Resolves A Net $59 Million FCPA Enforcement Action
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
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.