Fresenius Medical Care AG & Co. KGaA has settled with both the SEC and DOJ, resolving allegations that it had engaged in widespread bribery of local healthcare providers in Angola and Saudi Arabia, and committed accounting violations in Morocco, Spain and Turkey, among others. As part of the settlement, Fresenius will pay more than $200 million in disgorgement and penalties and be required to retain a compliance monitor for two years.
RK&O partner Audrey Ingram discussed this settlement with Anti-Corruption Report and drew comparisons to similar enforcement efforts in the life sciences and pharmaceutical industries, noting that "many of these bribery schemes are classic reruns of the conduct that was scrutinized a decade ago." Ms. Ingram also pointed out that while using joint ventures as a means of paying bribes has been prosecuted infrequently, companies everywhere would be advised to account for this risk in their compliance programs. "This is an increasingly common method of bribery and illustrates the importance of due diligence at all stages of corporate transactions," she said.
German Medical Device Company Settles Allegations of Pervasive Global Bribery With SEC and DOJ - Anti-Corruption Report