Johnson & Johnson Pay Up for Bribery, Kickbacks

The allegations from the U.S. Securities and Exchange Commission that Johnson & Johnson is guilty of bribing public doctors and paying kickbacks to Iraq were settled in court, and the company is hardly off the hook—they’re paying more than $70 million.

The scheme took place over several years, involving Johnson & Johnson subsidiaries who bribed Greek doctors who chose the company’s surgical implants, and paid off state doctors in Poland in Romania who promised to prescribe its drug.

Further evidence from the SEC and the Justice Department revealed that Johnson & Johnson also paid kickbacks to Iraq to win contracts under the United Nations Oil for Food Program. The news is hardly surprising to officials with access to related information. Pharmaceutical company Pfizer Inc. has also been linked to foreign bribery, and investigations have been going on for years. Eli Lilly & Co. and Baxter International Inc. are also being investigated for similar claims. Since the violations, Johnson & Johnson has undergone significant changes, according to Chairman and Chief Executive William C. Weldon.