Skip to main content
Menu Icon Menu Icon

FCPA Scorecard Blog

Foreign Corrupt Practices Act & Anti-Corruption

Bristol-Myers Squibb Pays $14 Million to SEC to Resolve China FCPA Offenses

China Bristol-Myers Squibb Pharmaceutical

On October 5, the SEC announced a settlement with Bristol-Myers Squibb to resolve allegations that the pharmaceutical company’s Chinese joint venture, BMS China, gave cash, jewelry, and other benefits to health care providers in order to boost prescription sales at state-owned or controlled hospitals.  The SEC proceeded via an administrative cease and desist order.  The SEC’s order found that the company violated the internal controls and books and records provisions of the FCPA. Bristol-Myers consented to the SEC’s order without admitting or denying the findings, and agreed to disgorge profits of $11.4 million plus $500,000 in pre-judgment interest and pay a civil penalty of $2.75 million.  Bristol-Myers also agreed to report to the SEC for two years regarding the status of its efforts to implement anti-corruption compliance controls. The SEC’s order states that Bristol-Myers failed to investigate red flags and claims by terminated BMS China employees that raised the possibility that sales personnel were making improper payments.  The order also states that Bristol-Myers was too slow to fill gaps in its internal controls regarding interactions with health care providers.