In light of a recent Wall Street Journal article about the DOJ and the SEC’s decision to not prosecute Medtronic Inc. for alleged FCPA Violations, news blog DigitalOlympus.com commented on this case as an example of the importance of cooperating with the authorities in these situations.
Houston, TX -- (SBWIRE) -- 07/02/2013 -- On June 28, popular news blog DigitalOlympus.com commented on a recent Wall Street Journal article by Samuel Rubenfeld regarding the Department of Justice and the Securities and Exchange Commission’s decision to not prosecute medical device maker Medtronic Inc. for alleged Foreign Corrupt Practices Act (FCPA) violations.
The Wall Street Journal article revealed that both the SEC and the DOJ have declined to prosecute Medtronic for foreign-bribery violations that were related to the sale of its products abroad. This information was disclosed earlier last week in a regulatory filing by the medical device manufacturer.
According to the news piece, “Medtronic said in the filing both the SEC and the Justice Department told the company this month they would be closing the investigation without pursuing any charges.” The article also stated that Medtronic had received letters from the U.S. authorities in 2007 looking for information on any potential FCPA misconducts.
Since its adoption in 1977, the Foreign Corrupt Practices Act prohibits the use of bribes to foreign officials by U.S. companies to create or maintain business deals. Medtronic Inc. said the SEC and the DOJ demanded additional information since the FCPA inquiries began six years ago.
In response to the Wall Street Journal news article, DigitalOlympus.com lead researchers emphasized the importance of cooperating with the authorities when facing allegations of FCPA violations. They also recommended due diligence investigations whenever these types of misconducts are suspected.
“Taking into consideration that Medtronic disclosed in 2008 that it was cooperating with both requests from the SEC and the DOJ, it’s no surprise that the American authorities declined to prosecute it for foreign-bribery violations,” said a spokesperson from DigitalOlympus.com.
Medtronic’s collaboration, probable internal investigations, as well as its remedial measures, could be perceived not only as great examples of business intelligence but also as significant examples of the importance of hiring experts who can help corporations develop compliance programs that avert illegal activities.
The Wall Street Journal article concluded by stating that, “Competitors also received similar letters, the filing said. The medical device industry has been the subject of FCPA inquiries since at least 2007. Many countries have national health systems, and U.S. authorities consider employees of those systems as foreign officials under the law.”
As a leading news and technology blog, DigitalOlympus.com promotes the implementation of due diligence practices that can help businesses improve their chances of averting FCPA misconducts.
Digitalolympus.com is a news blog dedicated to educating its readers on the latest technology advances. They are committed to gathering information on up and coming technologies that will enhance the lives of their readership. Digitalolympus.com is always at the forefront of technology news and events guiding its readers to accurately determine the best course of action for themselves and their businesses.