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After SEC settlement, Lilly waits for DOJ decision

Indiana-based pharma Eli Lilly said Thursday that although it paid $29.4 million to settle FCPA offenses with the SEC, it believes the DOJ’s longstanding investigation is still open.

The SEC charged Lilly in December last year with bribing government officials in Russia, Brazil, China, and Poland.

It ordered the company to pay $29.4 million, including disgorgement of $13.9 million, prejudgment interest of $6.7 million, and a penalty of $8.7 million.

Lilly didn’t admit or deny liability in the settlement.

At the time of the SEC settlement, the DOJ didn’t announce any enforcement action or make any comment about the case.

The SEC investigation had been pending since 2003.

It covers violations that occurred from 1994 through 2009.

The SEC said it had help with the investigation from the DOJ’s Fraud Section and the Federal Bureau of Investigation.

*      *     *

The full FCPA disclosure from Eli Lilly and Company’s Form 10-K filed with the SEC on February 21 said:

In August 2003, we received notice that the staff of the SEC was conducting an investigation into the compliance by Lilly’s Polish subsidiary with the FCPA. Subsequently, we were notified that the SEC had expanded its investigation to other countries and that the DOJ was conducting a parallel investigation. In December 2012, we announced that we had reached an agreement with the SEC to settle its investigation. The settlement relates to certain activities of Lilly subsidiaries in Brazil, China, Poland, and Russia from 1994 through 2009. Without admitting or denying the allegations, we consented to pay a civil settlement amount of $29.4 million and agreed to have an independent compliance consultant conduct a 60-day review of our internal controls and compliance program related to the FCPA. Our understanding is that the DOJ investigation remains open.

All FCPA-relevant disclosures filed with the SEC are available from ethiXbase, the world’s biggest anti-corruption knowledge base.

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