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 | Enforcement Action Dataset

Stanford Foreign Corrupt Practices Act Clearinghouse a Collaboration with Sullivan & Cromwell LLP

Enforcement Action Dataset

 
In the Matter of Orthofix International N.V. · Orthofix International N.V.'s Involvement in Brazil

Case Information

In the Matter of Orthofix International N.V.

Related FCPA Matter:   Orthofix International N.V.'s Involvement in Brazil Information

Case Information

Initiation Date:    01/18/2017  Information

Prosecuting Agency:    U.S. Securities and Exchange Commission

Type of Action:    SEC Administrative Proceeding

Docket or Case Number:    3-17800

Name of Prosecuting Attorneys:    Unknown

US Assisting Agencies:    Unknown

Foreign Enforcement Action/Investigation:    Unknown

Foreign Assistance:   

  • Brazilian Securities Commission (Comissão de Valores Mobiliários) (BR)

Origin of the Proceeding:    Previous FCPA Action Obligation

Whistleblower:    Unknown

Case Status:    Resolved


Summary  Information

Orthofix International N.V., incorporated in Curacao and headquartered in Texas, was a diversified medical device company that developed and sold a variety of medical products in several markets, both domestically and internationally. Orthofix’s stock was registered with the SEC and traded on the NASDAQ.

Orthofix do Brasil LTDA (“Orthofix Brazil”) was a wholly-owned Brazilian subsidiary of Orthofix which marketed and sold extremity fixation products to public and private sector customers. Orthofix Brazil’s financial statements were incorporated into Orthofix's books and records.

From about 2011 to 2013, Orthofix Brazil made improper payments through third-party intermediaries to doctors employed at government-owned hospitals in Brazil in order to induce the doctors to use Orthofix’s products. In all, the improper payments generated profits of approximately $2,928,000 for Orthofix.

On January 18, 2017, the SEC initiated a settled administrative proceeding against Orthofix. Under the terms of the proceeding, the SEC ordered Orthofix to cease and desist violations of the books & records and internal controls provisions of the FCPA, to pay a civil fine of $2,928,000 and disgorgement of $2,928,000 plus prejudgment interest of $263,375, and to hire an independent compliance monitor for a term of one year.

In a statement released on January 18, 2017, Orthofix stated that the DOJ had declined to prosecute the company in this matter.

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