Defendant Name: Smith & Nephew PLC

Defendant Type: Public Company

Document Reference: court_doc2_12-cv-00187

Document Details

Legal Case Name SEC v. Smith & Nephew plc
Document Name Final Judgment as to Defendant Smith & Nephew plc
Document Date 06-Mar-2012
Document Format Civil Proceeding
Case Number 12-cv-00187
Federal District Court District of Columbia, District of Columbia
Federal District Judge Gladys Kessler
Allegation Type Foreign Corrupt Practices Act
Document Summary On March 3, 2012, Federal District Judge Gladys Kessler entered final judgment against Smith & Nephew plc pursuant to the consent of Smith & Nephew plc.

Disgorgement & Penalty Information

Resolutions
Enjoinment
Compliance Related Independent Consultant
Undertakings Specified in Defendant's Consent
Monetary Penalties:

Disgorgement

Individual:     $4,028,000.00 Shared:    

Pre-Judgment Interest

Individual:     $1,398,799.00 Shared:    

Total Penalty

Individual:     $5,426,799.00 Shared:    

Related Documents:

comp22252 06-Feb-2012 Complaint
Complaint
On February 6, 2012, the SEC filed a complaint against Smith & Nephew PLC, a medical device company with its headquarters in London, England, in a case involving bribery of public doctors. The SEC alleged that "from 1997 to June 2008, two of Smith & Nephew PLC's subsidiaries "used a distributor to create a slush fund to make illicit payments to public doctors employed by government hospitals or agencies in Greece." Payments were made under the guise of marketing services, despite no such service being rendered. Additionally, the SEC alleged that Smith & Nephew failed to maintain its books and record and failed to maintain adequate internal controls.
LR-22252 06-Feb-2012 Litigation Release
SEC Charges Smith & Nephew PLC with Foreign Bribery
On February 6, 2012, the SEC announced a settlement with Smith & Nephew PLC to resolve "SEC charges that the global medical device company violated the Foreign Corrupt Practices Act (FCPA) when its subsidiaries bribed public doctors in Greece for more than a decade."
2012-25 06-Feb-2012 Press Release--Civil Action
SEC Charges Smith & Nephew PLC with Foreign Bribery
On February 6, 2012, the SEC announced that it charged London-based medical device company Smith & Nephew PLC with violating the Foreign Corrupt Practices Act ("FCPA") when its U.S. and German subsidiaries bribed public doctors in Greece for more than a decade to win business. According to the SEC's complaint filed in federal court in Washington, Smith & Nephew PLC's subsidiaries used a distributor to create a slush fund to make illicit payments to public doctors employed by government hospitals or agencies in Greece. On paper, it appeared as though Smith & Nephew PLC's subsidiaries were paying for marketing services, but no services were actually performed. Without admitting or denying the SEC's charges, Smith & Nephew PLC agreed to pay more than $5.4 million in disgorgement and prejudgment interest, consented to the entry of a court order permanently enjoining it from future violations of Sections 30A, 13(b)(2)(A), and 13(b)(2)(B) of the Securities Exchange Act of 1934 and ordering it to retain an independent compliance monitor for a period of 18 months to review its FCPA compliance program. Additionally, its subsidiary Smith & Nephew Inc. agreed to pay a $16.8 million fine as part of a deferred prosecution agreement with the Department of Justice.