May 11, 2023

Dutch medical supplier Koninklijke Philips N.V. has agreed to pay $62 million to settle charges that it violated the Foreign Corrupt Practices Act while selling medical equipment to hospitals in China.  A SEC investigation found that Philips’ Chinese subsidiaries gave distributors special pricing discounts that invited excessive funds to be used for improper payments, made such payments to curry favor toward their products, and manipulated the fair bidding process to fake compliance with Chinese laws.  The SEC had previously charged Philips for similar conduct in Poland between 1999 and 2007.  SEC

Tagged in: FCPA, Medical Devices and DME,