As highlighted in this prior post, in 2012 medical devices maker Smith & Nephew plc (a U.K. company with ADR shares traded on the New York Stock Exchange) resolved a $22 million Foreign Corrupt Practices Act enforcement action concerning conduct in Greece.
According to the DOJ, “Smith & Nephew, through certain executives, employees and affiliates, agreed to sell products at full list price to a Greek distributor based in Athens, and then pay the amount of the distributor discount to an off-shore shell company controlled by the distributor. These off-the-books funds were then used by the distributor to pay cash incentives and other things of value to publicly-employed Greek health care providers to induce the purchase of Smith & Nephew products. In total, from 1998 to 2008, Smith & Nephew, its affiliates and employees authorized the payment of approximately $9.4 million to the distributor’s shell companies, some or all of which was passed on to physicians to corruptly induce them to purchase medical devices manufactured by Smith & Nephew.”
Smith & Nephew is again under FCPA scrutiny as it recently disclosed: