logo
  Join        Login             Stock Quote

Eli Lilly (LLY) Fined $29M Over Allegations Of Improper Foreign Payments

 December 20, 2012 02:07 PM
 


(By Balachander) Eli Lilly & Co. (NYSE: LLY) has agreed to pay more than $29 million to settle allegations that its subsidiaries made improper payments to government officials in Russia, Brazil, China and Poland to win millions of dollars of business.

The U.S. Securities and Exchange Commission (SEC) charged Eli Lilly with violations of the Foreign Corrupt Practices Act (FCPA).

The settlement relates to a probe by the SEC of certain activities of four Lilly affiliates – Brazil, China, Poland and Russia – from 1994 through 2009.

Eli Lilly said it was notified of the investigation in August 2003.

[Related -Is This The Start Of A Correction?]

The SEC alleged that when the Indianapolis-based pharmaceutical company did become aware of possible FCPA violations in Russia, Lilly did not curtail the subsidiary's use of the marketing agreements for more than five years.

Lilly subsidiaries in Brazil, China, and Poland also made improper payments to government officials or third-party entities associated with government officials, the SEC said.

"Eli Lilly and its subsidiaries possessed a ‘check the box' mentality when it came to third-party due diligence," said Kara Novaco Brockmeyer, Chief of the SEC Enforcement Division's Foreign Corrupt Practices Unit.

Brockmeyer said companies can't simply rely on paper-thin assurances by employees, distributors, or customers.

The company neither admitted or denied the allegations and agreed to have an independent compliance consultant conduct a 60-day review of its internal controls and compliance program related to the FCPA.

[Related -Eli Lilly & Co. (LLY): Breast Cancer Drug Failure A Big Blow Amid Generic Threats]

The stock, which has been trading in the 52-week range of $38.30 to $53.99, inched 0.51 percent higher to trade at $49.17 on Thursday.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageFord Motor Company (F): A long Road to Deutsche Bank’s $19 Target

Ford Motor Company (NYSE:F) is going the right way on a one way street where most everybody else is driving read on...

article imageCitigroup Inc (C) Q1 Earnings Preview: Too Many Parts Heading South

Citigroup Inc (NYSE:C) will issue its first quarter results via press release at approximately 8 a.m. (ET) read on...

article imageFacebook Inc (FB): You Might Not Like It Today, But You’ll Like It Tomorrow

Do you honestly want to invest in stocks right now? It sure looks like the bull market is at least on read on...

article imageJPMorgan Chase & Co. (JPM) Q1 Earnings Preview: Regulation Costs To Trim Guidance?

JPMorgan Chase & Co. (NYSE:JPM) will host a conference call to review first quarter 2014 financial results read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.