Pfizer Deferred Prosecution Agreement

Due to Pfizer Inc.`s comprehensive remediation and improvement of compliance systems and internal controls, as well as the enhanced compliance obligations contained in the agreement, Pfizer H.C.P. is not required to maintain a corporate monitor, but Pfizer Inc. must report regularly to the Division on the implementation of this system and increased compliance efforts for the duration of the agreement. The recent action under the Foreign Corrupt Practices Act against Pfizer is remarkable in many respects. (See below for a previous article that details some remarkable aspects). It is also worth noting the “enhanced compliance requirements” that Pfizer must meet in accordance with the provisions of the deferred order maintenance agreement. Or is it another example of the fact that a company is obliged by the government (at risk of lawsuits for omission) to participate in fishing expeditions (if the company has already gone fishing), only to resume fishing, thus constituting an unlimited and unlimited transfer of the shareholder`s assets to FCPA Inc.? The DOJ has granted the subsidiary Pfizer H.C.P. a two-year deferred maintenance agreement. She accused the company of plotting and violating the FCPA in two stages for improper payments to government officials, including regulators and health professionals. The information and the adjourned lawsuit agreement were filed today in federal district court for the District of Columbia. In this previous article, the enforcement action taken in July against Orthofix International was examined. As noted in the post, the details of the DOJ`s allegations were not known, as the information against Orthofix was locked up.

The information (here) was recently sealed. In summary, the DOJ asserted under the title “corrupt behavior.” “From [2003 to March 2010], with the knowledge of Orthofix Executive A [a citizen of Peru and a legitimate resident in the United States, who was an executive of Orthofix Inc. (a wholly indirect subsidiary and responsible for distribution in Latin America), paid Promeca [a Mexican-based insurgency and an indirectly 100% subsidiary of Orthofix International] and its employees to Mexican officials of about $300,000. in exchange for agreements with IMSS and its hospitals to purchase millions of dollars in Orthofix International products. Pfizer H.C.P. received a penalty reduction as a result of Pfizer Inc.`s collaboration in the ongoing investigation of other companies and individuals. In addition to the $15 million fine, the agreement requires Pfizer Inc. to continue to conduct strict internal controls and cooperate fully with the Division. Diligence, including anti-corruption assessments, of distributors in high-risk markets for corruption. According to DOJ, Pfizer H.C.P. Kazakhstan has entered into an exclusive distribution agreement with a Kazakh company, valued at at least $500,000.

According to the DOJ, all or part of the value of the agreement should be shared with Kazakh government officials. In 2003, a regional superior of the Pfizer subsidiary sent a memorandum to his superior stating that the controller of the Kazakh company was very close to government officials and that the company in question was probably responsible for previous problems in obtaining product approvals. The agreement recognizes timely voluntary disclosure by Pfizer`s parent company H.C.P., Pfizer Inc.; A thorough and comprehensive review of underlying and related behaviours; The company`s significant cooperation with the division and the SEC; and early and significant remediation efforts, as well as substantial and ongoing improvements by Pfizer Inc.

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