As highlighted in this prior post, in 2013 Philips (a Netherlands-based company with shares listed on the NYSE) resolved a $4.5 million Foreign Corrupt Practices Act enforcement action concerning conduct in Poland.
As highlighted in this prior post, in 2019 the company again became the subject of the FCPA scrutiny – this time concerning conduct in Brazil and China.
As highlighted below, Philips recently disclosed that its conduct in another country is also under scrutiny.
In this recent SEC filing, Philips disclosed:
“Public Investigations
In July 2018, the company was informed that the public prosecution service in Rio de Janeiro and the Brazilian antitrust authority CADE were conducting an investigation into tender irregularities in the medical device industry in Brazil. Philips was one of a number of companies involved in the investigation. After conducting an internal investigation into the matter focusing on certain transactions that took place before 2011, the company reached a leniency agreement with the Brazilian public prosecution service in 2020 under which the company agreed to pay EUR 9.7 million. The investigation by CADE is ongoing.
In respect of the investigation in Brazil, the company also received inquiries from the US Securities and Exchange Commission (SEC) and US Department of Justice (DoJ). In addition, starting in June 2019, the company has engaged in discussions with and provided information to the SEC and DoJ regarding tender irregularities in the medical device industry in certain other jurisdictions. These interactions are ongoing and focus primarily on a number of compliance findings that the company is addressing in China and Bulgaria.
Given the uncertain nature of the relevant events and potential obligations, and based on current knowledge, the financial effect, if any, cannot be reliably estimated. The outcome of the uncertain events could have a material impact on the company’s consolidated financial position, results of operations and cash flows.”
