Summary
Johnson & Johnson (JNJ) announced on April 8, 2011, that it will pay $70,006,316 to settle Foreign Corrupt Practices Act (FCPA) investigations by the U.S. Department of Justice (DOJ) and the U.S. Securities and Exchange Commission (SEC). This amount represents fines, disgorgement, and interest, and it was an amount previously reserved for by the company. The settlement resolves investigations into alleged improper payments made by JNJ's medical device subsidiaries in certain foreign countries. While the financial impact of this settlement is material, it is important for investors to note that the amount was already accounted for in prior periods through a reserve. This filing serves to provide transparency on the resolution of these legal matters, which have been publicly disclosed.
Key Highlights
- 1JNJ to pay $70,000,6316 in fines, disgorgement, and interest to settle FCPA investigations.
- 2The settlement is with the U.S. Department of Justice (DOJ) and the U.S. Securities and Exchange Commission (SEC).
- 3The amount paid was previously reserved for by Johnson & Johnson.
- 4The investigations concerned alleged violations by JNJ's medical device subsidiaries.
- 5The resolution provides closure on publicly disclosed legal matters.
- 6The filing includes the relevant press release as an exhibit.