Johnson & Johnson Shareholders File Derivatives Law Suit Against the Company Over $78 Million Settlement on Foreign Corrupt and
Posted May 04 2011 6:48pm
It appears now that Johnson and Johnson has angered the share holders now with the settlement with the money paid to settle the corruption that occurred in Greece and the DePuy name is right in here again. Again I think when they bought Synthes that sounds like a better name to keep today instead of Depuy <grin>.
Information states that $24 million in profits were made by bribing Greek doctors and they received those DePuy implants…lucky them.
The shareholders now say the company breached it’s duty by concealing the offenses. They might be thinking of all those folks over in Greece and Poland who received those orthopedic implants and we know the story here in the US by all means so that could be another reason for the law suit as we are all humans and if bribes were used to sell more implants, well that’s not a good thing. No wonder the President of DePuy bailed not too long ago.
It sounds like the board is on the hot seat to include the CEO. Well consumers are lacking trust and now the shareholders? What’s next for Johnson and Johnson, I think I need to take a Tylenol about now <grin>. BD
Johnson & Johnson (NYSE: JNJ ) shareholders filed a derivatives lawsuit over $78 million in settlements the company paid to put over Foreign Corrupt Practices Act violation and kickback charges to rest.
Last month the New Brunswick, N.J.-based health care conglomerate agreed to the payments, without admitting or denying responsibility, to settle charges in the U.S. and the U.K. that its DePuy Inc. unit earned more than $24 million in profits over eight years by bribing Greek orthopedic surgeons to buy its implants. The U.S. settlement also covers bribery charges over its pharmaceutical products and an alleged kickbacks scheme to win contracts under the United Nations Oil-for-Food program in Iraq
The alleged infractions took place between 1998 and 2006 when the Warsaw, Ind.-based company, through its DePuy International Ltd. unit, began funneling funds to a Greek distributor which would in turn pay doctors working in the Greek public health system to purchase orthopedic implants made by DePuy.
While the scheme originated prior to JNJ's 1998 buyout of DePuy, investigators say that J&J officials knew of the arrangement and allowed it to continue, even allowing DePuy to purchase the Greek distributor in 2001 and renaming it Depuy Helles despite several red flags being raised internally.