SEC Steps up FCPA Enforcement and International Companies Feel the Burn

unclesam.jpgWhile Neelie Kroes and the hard-hitting men and women of the European Commission are busy bruising up large corporations with fines for antitrust violations, it seems the United States is involved in its own crackdown. They’re on a mission to remind everyone that the Foreign Corrupt Practices Act doesn’t just apply to American companies, but international companies operating within the United States as well.

Smith & Nephew, a British company that makes artificial hips and knees, along with Biomet, Medtronic, Stryker and Zimmer, got a crash course reminder after the SEC announced a new investigation into whether or not the companies bribed European doctors to prescribe their products to orthopedic and spinal surgery patients.

Apparently, this is all part of a growing trend. According to a new survey, U.S. regulatory agencies (particularly the SEC) have been stepping up investigations into British businesses, adding new expenses and stress for companies on the other side of the Atlantic.

This news comes in the wake of a $311 million settlement by the “medical device industry” in September for similar allegations.


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