Johnson & Johnson recently announced that it will pay over $90 million in fines, disgorgement and interest to settle FCPA investigations by the DOJ and the SEC. The investigations began in 2007 when Johnson & Johnson voluntarily disclosed that it believed non-U.S. subsidiaries had made improper payments in connection with the sale of medical devices. In addition, the settlement resolved an investigation of certain Johnson & Johnson subsidiaries in connection with the United Nations Oil for Food Program in Iraq.
As a formal matter, the settlement includes a Deferred Prosecution Agreement with the DOJ and a Consent to Final Judgment with the SEC. Johnson & Johnson’s voluntary disclosures, subsequent cooperation, and recent compliance efforts are recognized in the agreements. Pursuant to the Deferred Prosecution Agreement, the charges filed by the DOJ against a Johnson & Johnson subsidiary will be dismissed if Johnson & Johnson completes three years of enhanced FCPA compliance undertakings and reporting.