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FCPA Blog Daily News

Entries in Stryker (21)

Tuesday
Nov062018

After Strkyer II, are per diems atop expenses always improper?

A little-noticed nugget in the recent Stryker SEC Order (Stryker II) -- in addition to overbilling, kickbacks, and using unvetted intermediaries in India and China -- was the allegation that Stryker’s “Kuwait Distributor made over $32,000 in improper ‘per diem’ payments to Kuwaiti [healthcare providers] to attend Stryker events, when Stryker had directly paid the costs for lodging, meals, and local transportation for these individuals.”  

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Friday
Sep282018

Stryker hit with second FCPA enforcement action

Medical device maker Stryker Corp. agreed Friday to pay the SEC a $7.8 million penalty to resolve FCPA books and records and internal accounting controls offenses in India, China, and Kuwait.

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Tuesday
Mar032015

How do pharmas pay bribes? The SEC counts the ways

In a speech Tuesday at CBI's Annual Pharmaceutical Compliance Congress in Washington D.C., the head of the SEC's enforcement division, Andrew Ceresney, left, talked about the most common ways pharmas violate the FCPA.

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Thursday
Oct312013

Special report: Has the FBI disbanded its FCPA Unit?

The FCPA Blog posed this question to the DOJ and FBI's public affairs' offices Wednesday: Has the FCPA Unit at the FBI been disbanded? In response, Christopher Allen in the FBI's Public Affairs Office said: "The FBI's investigations are managed through the International Corruption Unit, and that unit is absolutely not being disbanded."

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Thursday
Oct242013

Stryker pays $13.2 million in SEC settlement

The SEC said Thursday that medical device and equipment maker Stryker Corporation will pay $13.2 million to resolve FCPA violations.

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Wednesday
Jul242013

New disclosure from Stryker

Here's the FCPA disclosure from medical device-maker Stryker Corporation's Form 10-Q filed with the SEC on July 23:

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Thursday
Jun272013

Medtronic wins double declination

Minnesota-based Medtronic Inc. won a double declination following an FCPA probe that lasted more than five years. The medical device maker said it received word in June from the DOJ and SEC that they won't pursue enforcement actions.

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Wednesday
Oct242012

Stryker's latest FCPA disclosure

From the members area of the FCPA Blog, here's Stryker's latest FCPA disclosure in its SEC filing this week:

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Thursday
Jul262012

Stryker's Latest Disclosure

Here's Michigan-based Stryker Corporation's full FCPA disclosure from its Form 10-Q filed with the SEC on July 24.

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Friday
Apr082011

Johnson & Johnson In $77 Million Global Settlement

Johnson & Johnson will pay a $21.4 million penalty to resolve criminal FCPA charges with the DOJ and $48.6 million in disgorgement and prejudgment interest to settle the SEC’s civil charges.

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Wednesday
Dec292010

The 2011 Watch List

Of the 150 files in the DOJ's hopper, our watch list includes more than half of them.

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Friday
May142010

SFO Facing Uncertain Future

For the second time in recent months, U.K. judges have warned the Serious Fraud Office not to make plea deals in overseas bribery cases, throwing into doubt the agency's whistleblower program and its partnership with the U.S. Justice Department in resolving global corruption cases.

This week a U.K. appeals court affirmed the suspended sentence agreed between the SFO and a former sales executive who helped bribe Greek doctors and then turned whistleblower. But at the same time, the court said the SFO's U.S.-style approach was unconstitutional.

Robert John Dougall, 45, formerly marketing director of DePuy, pleaded guilty in April to making £4.5 million in corrupt payments to Greek medical professionals within the state-controlled healthcare system. DePuy, acquired by Johnson & Johnson in 1999, makes and sells orthopedic devices. 

The SFO said Dougall was the first "co-operating defendant" in a major SFO corruption investigation. It had recommended leniency in exchange for his guilty plea and help in the case, as typically happens in U.S. white-collar prosecutions. The SFO asked for a suspended sentence; the trial court instead sent Dougall to prison for a year.

The appeals court reversed the sentence but hammered the SFO. It said "agreements between the prosecution and the defense about the sentences to be imposed in fraud and corruption cases were constitutionally forbidden" and solely under the purview of judges, according to reports.

In March, Britain's second-ranking criminal judge said the $12.7 million fine the SFO agreed with a U.K. division of Innospec Inc. went beyond the SFO's authority. Delaware-based Innospec had reached what it believed was a $40 million global settlement with U.S. prosecutors and the SFO.

At Innospec's hearing, Lord Justice Thomas, the deputy head of criminal justice in the U.K. courts, said: “I have concluded that the director of the SFO had no power to enter into the arrangements made and no such arrangements should be made again.” Although he confirmed the U.K. part of the fine agreed by the SFO, he called the amount "wholly inadequate." See our post here.

The SFO first charged Dougall in November 2009 after a "referral" from the U.S. Justice Department. Two months earlier, DePuy and four other orthopedic device makers -- Biomet, Zimmer, Smith & Nephew and Stryker -- had agreed to pay $310 million to settle charges they paid kickbacks to induce U.S. doctors to buy their products. Since the U.S. settlement, the four companies, along with Medtronic Inc. and Wright Medical Group, have disclosed DOJ and SEC Foreign Corrupt Practices Act investigations. See our post here.