AstraZeneca Paid More Than $5 Million to Settle SEC FCPA Charges

Summary

In August 2016, AstraZeneca PLC agreed to pay more than $5 million to settle U.S. Securities and Exchange Commission charges involving improper payments by subsidiaries in China and Russia. The SEC found that employees of AstraZeneca's Chinese subsidiary made improper payments in cash, gifts and other items to healthcare providers and officials, including incentives connected with pharmaceutical sales. The SEC also found improper payments in Russia. According to the SEC, the payments were not accurately recorded in the company's books and records and AstraZeneca lacked sufficient internal accounting controls and an effective anti-corruption compliance program during the relevant period. Without admitting or denying the SEC's findings, AstraZeneca agreed to disgorgement, prejudgment interest and a civil penalty. Source: U.S. Securities and Exchange Commission https://www.sec.gov/litigation/admin/2016/34-78730-s.pdf