Processing your request


please wait...

Enforcement Action Dataset

 

Initiation Date:    08/07/2012  Information

Prosecuting Agency:    U.S. Securities and Exchange Commission

Type of Action:    SEC Federal Court Proceeding

Docket or Case Number:    12-cv-01304

Court:    District of Columbia

Name of Prosecuting Attorneys:   

  • Kara N. Brockmeyer, SEC Headquarters
  • Charles E. Cain, SEC Headquarters
  • Michael K. Catoe, SEC Headquarters

US Assisting Agencies:   

  • U.S. Department of Justice
  • Federal Bureau of Investigation

Foreign Enforcement Action/Investigation:    Unknown

Foreign Assistance:    Unknown

Origin of the Proceeding:    Voluntary disclosure

Whistleblower:    Unknown

Case Status:    Resolved


Summary  Information

Wyeth was a global pharmaceutical company headquartered in Madison, New Jersey and incorporated in Delaware. Its securities were registered with the Commission under Section 12(b) of the Exchange Act, and its common stock traded on the New York Stock Exchange (“NYSE”) under the symbol “WYE.” Wyeth and its subsidiaries conducted worldwide operations in over 145 countries, employed more than 47,000 people, and in fiscal year 2008, Wyeth’s sales totaled $22.8 billion. In connection with its acquisition by Pfizer on or about October 15, 2009, Wyeth delisted from the NYSE and became a wholly-owned subsidiary of Pfizer.

Wyeth subsidiaries engaged in FCPA violations primarily before but also after the company’s acquisition by Pfizer in late 2009. Starting at least in 2005, subsidiaries marketing Wyeth nutritional products in China, Indonesia, and Pakistan bribed government doctors to recommend their products to patients by making cash payments or in some cases providing BlackBerrys and cell phones or travel incentives. They often used fictitious invoices to conceal the true nature of the payments. In Saudi Arabia, Wyeth’s subsidiary made an improper cash payment to a customs official to secure the release of a shipment of promotional items used for marketing purposes. The promotional items were held in port because Wyeth Saudi Arabia had failed to secure a required Saudi Arabian Standards Organization Certificate of Conformity.

Following Pfizer’s acquisition of Wyeth, Pfizer undertook a risk-based FCPA due diligence review of Wyeth’s global operations and voluntarily reported the findings to the SEC staff. Pfizer diligently and promptly integrated Wyeth’s legacy operations into its compliance program and cooperated fully with SEC investigators.

In response, the SEC filed a one count complaint against Wyeth alleging violations of the Books & Records and Internal Controls provisions of the FCPA. In settling the SEC’s charges, Wyeth neither admitted nor denied the allegations, and Wyeth consented to the entry of a final judgment ordering it to pay disgorgement of $17,217,831 in net profits and prejudgment interest of $1,658,793, for a total of $18,876,624. Wyeth also agreed to be permanently enjoined from further violations of the FCPA.

Pfizer and Wyeth agreed to separate settlements in which they will pay more than $45 million combined to settle their respective charges. In a parallel action, the Department of Justice announced that Pfizer H.C.P. Corporation agreed to pay a $15 million penalty to resolve its investigation of FCPA violations.

Protected Content


Please Log In or Sign Up for a free account to access restricted features of the Clearinghouse website, including the Advanced Search form and the full case pages.

When you sign up, you will have the option to save your search queries performed on the Advanced Search form.