Forensics & fraud blog

What does the recent US$ 22.2 million settlement of Smith & Nephew means for the Medical Devices industry?

On February 06, 2012, U.K. based medical devices maker Smith & Nephew Plc. agreed to pay $22.2 million to settle Foreign Corrupt Practices Act offenses committed by its U.S. (Smith & Nephew Inc.) and German (Smith & Nephew Orthopaedics GmbH) subsidiaries. [Refer SEC’s Litigation Release 22252 / February 6, 2012 on the following link http://www.sec.gov/litigation/litreleases/2012/lr22252.htm (Accessed on February 9, 2012)]

This is a significant order for more than one reason. The biggest reason is that this order is one in a series of previous prosecutions that has included key players in the medical devices industry. Another reason is that this order highlights why companies that are operating in medical devices segment need to go that extra mile to ensure that the transactions entered into by third parties (agents, distributors etc.) on their behalf adhere to their policies. In this alert, we outline salient points of this case and then outline what companies in this segment can do in future to avoid such actions.

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With the 2012 World Economic Forum in Davos just behind us, Transparency International reflect on some of the evolutions in the global corporate community in terms of transparency, corruption, bribery and perception of people around the world.

TI sees the need for companies to consider new approaches and new business models in light of the persistent global economic woes and ever growing public dis-trust in corporations around the world.

Well worth the read: TI – Corporate Transparency: Old Problems and New Ideas

Interesting publication from the UK Serious Fraud Office providing comments on the impact of anti-fraud and anti-corruption legislation. It provides insights into current international legislation and related implications. Additionally it provides hands-on information regarding the management of forensic investigations and the implementation of preventive measures.

Serious Economic Crime: A boardroom guide to prevention and compliance