Fresenius Medical Care AG said in a securities filing Tuesday that it has set aside €200 million ($245 million) for a potential FCPA resolution with the DOJ and SEC.
Fresenius, based in Homburg, Germany, said the money “represents an estimate from a range of potential outcomes.”
It said negotiations with the DOJ and SEC are continuing but haven’t “yet achieved an agreement-in-principle.”
The FCPA investigation started in 2012 when Fresenius disclosed potential violations to U.S. authorities.
The €200 million reservation disclosed Tuesday “encompasses government agencies’ claims for profit disgorgement, as well as accruals for fines and/or penalties, certain legal and other consultancy expenses and other related costs or asset impairments.”
Fresenius is the world’s biggest provider of dialysis products and services. It operates more than 3,700 dialysis clinics and has 37 production sites around the world.
It hasn’t released any details about the possible FCPA violations or where they might have occurred.
* * *
The full FCPA disclosure from Fresenius Medical Care AG & Co. KGaA’s Form 6-K filed with the SEC on February 27, 2018 said:
Fresenius Medical Care establishes provision of EUR 200 million regarding ongoing FCPA settlement negotiations
Fresenius Medical Care, the world’s largest provider of dialysis products and services, has decided to establish a provision in the total amount of EUR 200m in its 2017 annual financial statements with respect to its ongoing settlement negotiations with the U.S. government regarding conduct that may have violated provisions of the U.S. Foreign Corrupt Practices Act (FCPA).
This provision takes into account recent developments in the ongoing settlement negotiations with the U.S. Department of Justice and the U.S. Securities Exchange Commission. The provision represents an estimate from a range of potential outcomes. The charge encompasses government agencies’ claims for profit disgorgement, as well as accruals for fines and/or penalties, certain legal and other consultancy expenses and other related costs or asset impairments. In 2012, Fresenius Medical Care voluntarily advised the U.S. Department of Justice and the U.S. Securities Exchange Commission about its investigations into this conduct.
The settlement negotiations are continuing and have not yet achieved an agreement-in-principle; failure to reach agreement remains possible.
Richard L. Cassin is the publisher and editor of the FCPA Blog.
are the people who are in dialysis getting anything from this
Comments are closed for this article!