Defendant Name:
Smith & Nephew PLC
Defendant Type:
Public Company
Document Reference:
2012-25
Document Details
Legal Case Name
SEC v. Smith & Nephew plc
Document Name
SEC Charges Smith & Nephew PLC with Foreign Bribery
Document Date
06-Feb-2012
Document Format
Civil Proceeding
Allegation Type
Foreign Corrupt Practices Act
Document Summary
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.
Disgorgement & Penalty Information
Resolutions
Enjoinment
Various Undertakings
Monetary Penalties:
Disgorgement
(Penalty was noted in document, but no amount was listed)
Pre-Judgment Interest
(Penalty was noted in document, but no amount was listed)
Total Penalty
Individual:
$5,400,000.00
Shared:
