Skip to main content
Menu Icon Menu Icon
Close

FCPA Scorecard Blog

Foreign Corrupt Practices Act & Anti-Corruption

Bio-Rad Settles FCPA Claims With SEC and DOJ

Thailand Russia Bio-Rad Vietnam

On November 3, Bio-Rad Laboratories Inc. agreed to pay a total of $55 million to settle DOJ and SEC allegations that the company violated the FCPA in Russia, Thailand, and Vietnam.  According the SEC's cease-and-desist order, subsidiaries of the bio-medical instrument manufacturer paid $7.5 million in bribes in Russia, Thailand, and Vietnam from 2005 to 2010 in order to win business in violation of Section 30A of the FCPA, which resulted in $35 million in improper profits for the company.  Some of the payments were disguised as commissions to foreign agents, in situations where the "agents had no employees and no capacity to perform the purported services for Bio-Rad."  The company also allegedly had an "atmosphere of secrecy."  Bio-Rad self-disclosed the violations to the government in 2010. As part of the resolution, the company reached a Non-Prosecution Agreement with the DOJ regarding activities in Russia and agreed to a $14.35 million criminal penalty related to books and records and internal controls violations.  The resolution with the SEC involved the payment of $40.7 million in disgorgement and pre-judgment interest regarding anti-bribery, books and records, and internal controls violations related to Russia, Thailand, and Vietnam. Of note, and continuing the trend of cross-border cooperation, the SEC in its press release disclosed that numerous international entities had assisted its investigation, including the "Bank of Lithuania, Financial and Capital Market Commission of Latvia, and British Virgin Islands Financial Services Commission."  Underscoring the issue, following public disclosure of Bio-Rad's settlement with the SEC regarding alleged payments in Vietnam, news reports indicate that Vietnam's Ministry of Health has ordered a review of hospital purchases from Bio-Rad, and asked for information and assistance from US authorities.

Share page with AddThis