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D.C. Circuit Backs SEC’s Denial Of Whistleblower Bounties To Two Claimants In Connection With Novartis FCPA Enforcement Action

By on March 29, 2022 in Novartis, Whistleblowers
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In 2016, Swiss pharmaceutical company Novartis coughed up $25 million to resolve a SEC FCPA enforcement action focused on the conduct of its indirect Chinese subsidiaries. (See here).

In the aftermath of the enforcement action, twelve individuals filed applications with the SEC for a whistleblower bounty pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act and the SEC determined that two claimants deserved a joint award.

Two of the ten claimants whose applications were denied, appealed the SEC’s denial to the D.C. Circuit Court of Appeals and in this recent decision the Court sided with the SEC in its denial.

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Gobbledygook – The Anti-Bribery Report Of Novartis

By on February 3, 2022 in Compliance, Novartis
Novartis

Novartis belongs to the long and growing list of repeat FCPA offenders.

As highlighted here, in 2020 the company resolved a $347 million FCPA enforcement action concerning conduct in Greece, Vietnam, and South Korea and as highlighted here in 2016 the company resolved a $25 million FCPA enforcement action concerning conduct in China.

Against this backdrop, it was interesting to review the company’s “Anti-Bribery Report” recently released by the company.

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Novartis Joins The Repeat Offender Club – This Time Paying Approximately $347 Million To Resolve An FCPA Enforcement Action

By on June 26, 2020 in 2020 Enforcement Action, Distributor Issues, DOJ Enforcement Action, Foreign Issuers, Greece, Healthcare Products, Healthcare Providers As Foreign Officials, Novartis, Pharmaceutical Industry, SEC Enforcement Action, South Korea, SOX Certification Issues, Third Parties, Travel and Entertainment, Vietnam
Novartis

What happens when the Greek, Swiss, and South Korean subsidiaries of a Swiss company engage in improper conduct in Greece, Vietnam and South Korea? Why of course, approximately $345 million flows into the U.S. treasury.

Yesterday, Novartis joined the long and growing list of FCPA repeat offenders as the DOJ and SEC announced (see here and here) a combined approximate $347 million enforcement action. (As highlighted in this prior post, in 2016 Swiss pharmaceutical company Novartis coughed up $25 million to resolve a SEC FCPA enforcement action focused on the conduct of its indirect Chinese subsidiaries).

Yesterday’s enforcement action included a DOJ component (in which the company agreed to pay approximately $234 million) and a SEC component (in which the company agreed to pay approximately $113 million).

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Friday Roundup

By on April 28, 2017 in Andras Balogh, Bio-Rad, Cosan, Elek Straub, Enforcement Agency Policy, Enforcement Agency Speeches, FCPA Trials, KBR, Magyar Telekom, Multimedia, Newmont Mining, Ng Lap Seng, Novartis, Related Civil Litigation, Sanford Wadler, Tamas Morvai, Whistleblowers
Roundup

Selective SEC release, scrutiny alert, from the docket, for the reading stack, for your viewing pleasure, and a survey. It’s all here in the Friday roundup.

Selective SEC Release

Since it was filed in December 2011, this site has closely followed the SEC’s long-standing Foreign Corrupt Practices Act enforcement action against former Magyar Telekom executives Elek Straub (former Chairman and CEO); Andras Balogh (former Director of Central Strategic Organization); and Tamas Morvai (former Director of Business Development and Acquisitions) with various FCPA and related offenses. (See here for the prior post).

The complaint alleged, in connection with a bribery scheme in Macedonia and Montenegro, that the individuals violated or aided and abetted violations of the FCPA’s anti-bribery, books and records, and internal controls provisions; knowingly circumvented internal controls and falsified books and records; and made false statements to the company’s auditor.

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