Pfizer and Johnson & Johnson Settle Bribe Accusations

Earlier this year Pfizer and rival Johnson & Johnson settled a bribery probe that provided U.S. authorities with information about certain practices that could violate the Foreign Corrupt Practices Act. Along with the settlement with Johnson & Johnson, Pfizer Inc. will pay more than $60 million to resolve U.S. government probes into whether the drug maker paid bribes to win business overseas.

Pfizer stated on Nov. 10 that it had reached agreements in principle with the SEC and the Justice Department in connection with potentially improper payments made by units of Pfizer and Wyeth, which Pfizer bought in 2009 for $68 billion.

In April, Johnson & Johnson paid $70 million to settle charges that subsidiaries paid bribes to Greek doctors who chose the company’s surgical implants and to doctors in Poland and Romania in exchange for contracts and agreements to prescribe the company’s drugs. In a deferred prosecution agreement with the Justice Department, Johnson & Johnson admitted to violations of the anti-bribery law and will avoid prosecution if it satisfies the government that the company has made changes to prevent future misconduct.