The Securities and Exchange Commission and Eli Lilly (LLY) have just announced that the drugmaker has settled charges of violating the Foreign Corrupt Practices Act — effectively allegations that Lilly bribed government officials to win business in Russia, Brazil, China and Poland.
Lilly will pay close to $30 million to settle the case, and (as usual) won’t have to admit or deny the charges. Lilly’s stock is up 0.5% at the latest.
From the SEC’s statement:
- ������ Lilly�s subsidiary in Russia paid millions of dollars to offshore entities for alleged �marketing services� in order to induce pharmaceutical distributors and government entities to purchase Lilly�s drugs, including approximately $2 million to an offshore entity owned by a government official and approximately $5.2 million to offshore entities owned by a person closely associated with an important member of Russia�s parliament. Despite the company�s recognition that the marketing agreements were being used to �create sales potential� with government customers and that it did not appear that any actual services were being rendered under the agreements, Eli Lilly allowed its subsidiary to continue using the agreements for years.
- ������� Employees at Lilly�s subsidiary in China falsified expense reports in order to provide spa treatments, jewelry, and other improper gifts and cash payments to government-employed physicians.
- ������� Lilly�s subsidiary in Brazil allowed one of its pharmaceutical distributors to pay bribes to government health officials to facilitate $1.2 million in sales of a Lilly drug product to state government institutions.
- ������� Lilly�s subsidiary in Poland made eight improper payments totaling $39,000 to a small charitable foundation that was founded and administered by the head of one of the regional government health authorities in exchange for the official�s support for placing Lilly drugs on the government reimbursement list.
No comments:
Post a Comment