Orthofix International in January entered into its second Foreign Corrupt Practices Act (FCPA) settlement in less than 5 years: a $6.1 million disposition with the Securities and Exchange Commission to resolve allegations that the company’s Brazilian subsidiary made improper payments to doctors at government-owned hospitals in Brazil to increase sales.
The FCPA prohibits corruptly providing anything of value to a “foreign official,” including doctors at state-owned hospitals, for the purpose of obtaining or retaining business. It also requires U.S. securities issuers to maintain accurate books and records and implement sufficient internal accounting controls.
