Scrutiny Updates
Boston Scientific
As highlighted in this prior post, Boston Scientific has been under FCPA scrutiny since early 2022. In its recent annual report (March 19th) the company disclosed:
“Like many healthcare companies, the Company receives inquiries and has ongoing discussions with governmental agencies with respect to the Company’s operations, such as the Securities and Exchange Commission (SEC), the Department of Justice (DOJ) and foreign regulators, including its operations in Vietnam with respect to alleged Foreign Corrupt Practices Act (FCPA) violations the Company received in March 2022. The Company has received related subpoenas for documents from the DOJ and the SEC with respect to the Vietnam matter, and is cooperating with the government while investigating these allegations. From time to time, the Company also self-discloses potential concerns to regulators. In the course of Vietnam-related discussions with the DOJ and SEC, the Company has disclosed that it is investigating other potential concerns in Vietnam and other countries.”
Pfizer And Johnson & Johnson Remain Under FCPA Scrutiny
Remember when a high-ranking Department of Justice official declared in 2017 that it was the intent of the DOJ “for our FCPA investigations to be measured in months, not years.” (See here for the prior post).
The statement was laughable when made and remains laughable approximately seven years later because since the statement was made FCPA scrutiny tends to average approximately 4-5 years. (See here).
Several current instances of FCPA scrutiny have dragged on for years including that of Pfizer and Johnson & Johnson.
Pfizer’s most recent quarterly filing states:
Scrutiny Alerts And Updates
This post highlights scrutiny alerts and updates regarding Pfizer and Johnson & Johnson – companies that have previously resolved Foreign Corrupt Practices Act enforcement actions.
Pfizer
In 2012, Pfizer (and Wyeth – an entity Pfizer acquired in 2009) resolved FCPA enforcement actions totaling approximately $60 million. (See here).
Pfizer previously disclosed additional FCPA scrutiny in Russia as the company stated: “In June 2019, we received an informal request from the U.S. Department of Justice’s FCPA Unit seeking documents relating to our operations in Russia. In September 2019, we received a similar request from the SEC’s FCPA unit. We are producing records pursuant to these requests.”
Pfizer recently added China as an additional country of scrutiny as the company disclosed:
The FCPA Repeat Offender List May Substantially Grow
Previous posts here and here have highlighted the numerous companies which have resolved not just one, but two, Foreign Corrupt Practices Act enforcement actions.
The FCPA repeat offender list may substantially grow as Reuters reports that “the U.S. FBI is investigating corporate giants Johnson & Johnson, Siemens AG, General Electric Co and Philips for allegedly paying kickbacks as part of a scheme involving medical equipment sales in Brazil.”
Court Concludes That Plaintiffs Counsel’s Reference To Prior FCPA Settlement In Civil Case Provides Grounds For A New Trial
Once the ink is dry on a Foreign Corrupt Practices Act settlement, most people forget about it. However, it does not disappear and may be resurrected by opportunistic parties including in civil litigation.
Such is the circumstance in this post which discusses a recent 5th Circuit decision in which plaintiffs’ counsel referenced a 2011 FCPA enforcement action against Johnson & Johnson and a related entity. (See here for the prior post).