Johnson & Johnson agrees $70 million settlement with USA's DoJ and SEC for Corrupt Foreign Practices Act violations

In what is set to be a series of pharmaceutical industry prosecution, US health care giant Johnson & Johnson (NYSE: JNJ) has agreed to pay a $21.4 million criminal penalty as part of a deferred prosecution agreement with the US Department of Justice to resolve improper payments by J&J subsidiaries to government officials in Greece, Poland and Romania in violation of the Foreign Corrupt Practices Act (FCPA), the DOJ’s Criminal Division announced on Friday. The agreement also resolves kickbacks paid to the former government of Iraq under the United Nations Oil for Food Program.

In a related matter, J&J also reached a settlement on Friday with the Securities and Exchange Commission, under which it agreed to pay more than $48.6 million in disgorgement of profits, including pre-judgment interest, making a total of $70 million.

This case is being prosecuted by Trial Attorney Kathleen Hamann of the Criminal Division’s Fraud Section with assistance from the FBI’s Washington Field Office’s dedicated FCPA squad. The Criminal Division’s Office of International Affairs provided assistance in this matter.