Settlements

ST-426
Bristol-Myers Squibb
Bristol-Myers Squibb
United States
Securities and Exchange Commission
China
2015
10/5
Unknown
Legal Person
Civil
Cease and Desist Order
Disgorgement of Profits, Prejudgment interest, Civil Fine
$14,650,000
$11,400,000
$500,000
$2,750,000
$0
NA
Art.16
Art. 1, Art. 2, Art. 8
Internal controls violations and Recordkeeping
No admission or denial of alleged offenses
Yes
According to the US Securities and Exchange Commission’s "order instituting settled administrative proceedings, Bristol-Myers Squibb lacked effective internal controls over interactions with health care providers at BMS China, its majority-owned joint venture. Between 2009 and 2014, BMS China sales representatives sought to secure and increase business by providing health care providers in China with cash, jewelry and other gifts, meals, travel, entertainment, and sponsorships for conferences and meetings. BMS China inaccurately recorded the spending as legitimate business expenses in its books and records, which were then consolidated into the books and records of Bristol-Myers Squibb. [ ] The SEC’s order finds that Bristol-Myers Squibb violated the FCPA’s internal controls and recordkeeping provisions. Without admitting or denying the findings, Bristol-Myers Squibb consented to the order and agreed to return $11.4 million of profits plus prejudgment interest of $500,000 and pay a civil penalty of $2.75 million. Bristol-Myers Squibb also agreed to report to the SEC for a two-year period on the status of its remediation and implementation of FCPA and anti-corruption compliance measures." (Source: US SEC Press Release, "SEC Charges Bristol-Myers Squibb With FCPA Violations," October 5, 2015.)