Eli Lilly Settles SEC FCPA Suit for $29.4 Million
Eli Lilly agreed to pay over $29 million without admitting or denying allegations that it violated the Foreign Corrupt Practices Act (FCPA) through improper payments to foreign government officials to win millions of dollars of business in Russia, Brazil, China, and Poland, said the Securities and Exchange Commission in a press release. Eli Lilly used a Russian subsidiary to pay millions of dollars to third parties chosen by government customers or distributors that rarely provided any services and in some cases funneled money to government officials, according to the SEC complaint against the pharmaceutical company. Transactions with offshore or government-affiliated entities did not receive specialized or closer review for possible FCPA violations, said the SEC. Paperwork was accepted at face value and little was done to assess whether the terms or circumstances surrounding a transaction suggested the possibility of foreign bribery, it said.
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The company also agreed to the entry of a final judgment permanently enjoining the company from violating the anti-bribery, books and records, and internal controls provisions of the FCPA. Lilly also agreed to comply with certain undertakings including the retention of an independent consultant to review and make recommendations about its foreign corruption policies and procedures. The settlement is subject to court approval.