Checking In On Stryker
In 2013 Stryker resolved a $13.2 million Foreign Corrupt Practices Act enforcement action based on conduct in Mexico, Poland, Romania, Argentina, and Greece.
In 2018 Stryker resolved a $7.8 million FCPA enforcement action based on conduct in India, China, and Kuwait.
In 2023, Stryker disclosed:
“We are currently investigating whether certain business activities in a foreign country violated provisions of the Foreign Corrupt Practices Act (FCPA) and have engaged outside counsel to conduct this investigation. We have been contacted by the United States Securities and Exchange Commission and United States Department of Justice and are cooperating with both agencies. At this time we are unable to predict the outcome of the investigation or the potential impact, if any, on our financial statements.”
Scrutiny Updates
Stryker
In 2013 Stryker resolved a $13.2 million Foreign Corrupt Practices Act enforcement action based on conduct in Mexico, Poland, Romania, Argentina, and Greece.
In 2018 Stryker resolved a $7.8 million FCPA enforcement action based on conduct in India, China, and Kuwait.
In 2023, Stryker disclosed:
FCPA Repeat Offender Stryker Discloses FCPA Scrutiny
As highlighted in this prior post, in 2013 Stryker resolved a $13.2 million Foreign Corrupt Practices Act enforcement action based on alleged conduct in Mexico, Poland, Romania, Argentina, and Greece.
As a condition of settlement, Stryker agreed to cease and desist from committing or causing any violations and any future violations of the FCPA’s books and records and internal controls provisions.
The SEC order also contained a separate section titled “Stryker’s Remedial Efforts” and stated among other things:
Sixth Circuit Concludes That Just Because The United Nations Convention Against Corruption Requires That American Courts Be Available To Foreign Plaintiffs In Corruption Cases Does Not Mean “That Foreign States Win In Our Courts No Matter The Merits Of Their Arguments”
As highlighted in this prior post, in 2013 Stryker resolved a $13.2 million enforcement action based on alleged conduct in Mexico, Poland, Romania, Argentina, and Greece.
As to the Mexico conduct, the SEC found: “Between March 2004 and January 2007, Stryker’s wholly-owned subsidiary in Mexico (“Stryker Mexico) made three payments totaling more than $76,000 to foreign officials employed by a Mexican governmental agency (the “Mexican Agency”) responsible for providing social security for government employees. Stryker made these payments to win bids to sell its medical products to certain public hospitals in Mexico.”
Appellate Court To Decide If The U.S. Is An Appropriate Forum For The Mexican Government To Sue Stryker For Damages In Connection With A 2013 FCPA Enforcement Action
This previous post highlighted how the Mexican government (specifically Instituto Mexicano del Seguro Social (IMSS) – the Mexican Social Security Institute) filed a civil action against Stryker Corporation in connection with its 2013 Foreign Corrupt Practices Act enforcement action concerning conduct in, among other countries, Mexico.
As to the Mexico conduct, the SEC found in the enforcement action: