Pfizer Inc. (“Pfizer”) is a global pharmaceutical company that discovers, develops, manufactures and markets prescription medicines for humans and animals. Pfizer is incorporated in the State of Delaware and is headquartered in New York, New York. Its securities are registered with the Commission under Section 12(b) of the Exchange Act, and its common stock trades on the New York Stock Exchange under the symbol “PFE.”
Between about 2001 and about 2007, employees and agents of Pfizer’s subsidiaries in Bulgaria, China, Croatia, Czech Republic, Italy, Kazakhstan, Russia, and Serbia made improper payments to foreign officials to obtain regulatory and formulary approvals, sales, and increased prescriptions for the company’s pharmaceutical products. They tried to conceal the bribery by improperly recording the transactions in accounting records as legitimate expenses for promotional activities, marketing, training, travel and entertainment, clinical trials, freight, conferences, and advertising.
Pfizer undertook a risk-based FCPA due diligence review of its global operations and made an initial voluntary disclosure to the SEC in 2004. Pfizer continued to cooperate fully with SEC investigators.
In response, the SEC filed a one count complaint against Pfizer alleging violations of the Books & Records and Internal Controls provisions of the FCPA. In settling the SEC’s charges, Pfizer consented to the entry of a final judgment ordering it to pay disgorgement of $16,032,676 in net profits and prejudgment interest of $10,307,268 for a total of $26,339,944. Pfizer also is required to report to the SEC on the status of its remediation and implementation of compliance measures over a two-year period, and is permanently enjoined from further violations of the FCPA.
In a parallel action with the DOJ, Pfizer subsidiary Pfizer H.C.P. Corporation agreed to pay a $15 million penalty to resolve its investigation of FCPA violations.
