Alcon, Inc. was a multinational eye care company headquartered in Texas and incorporated in Switzerland until 2011, when it merged with Novartis AG, a global pharmaceutical company based in Switzerland. After the merger, Alcon, Inc. became a wholly owned subsidiary of Novartis AG. In 2019, Novartis spun off Alcon into its own company again, and the new Alcon's securities were registered with the SEC and traded on the New york Stock Exchange. Novartis was previously subject to an SEC administrative action in 2016 for its FCPA misconduct in China.
Alcon Pte Ltd was an affiliate of the Alcon Division of Novartis between 2011 and 2014 with headquarters in Singapore. Among other functions, Alcon Pte provided financial services and managerial oversight for the Alcon Division’s operations in Asia, including for two representative offices in Vietnam. Alcon Pte’s books, records, and accounts were included in the consolidated financial statements that Novartis filed with the SEC.
According to the documents in this case, beginning in or about 2007, the Alcon Vietnam Representative Offices and a Vietnamese distributor company engaged in a scheme to bribe health care professionals ("HCP") in hospitals and clinics owned and controlled by the Vietnamese government. The distributor made the payments directly to HCPs, and the Alcon Vietnam Representative Offices, with the approval of employees of Alcon Pte, reimbursed the distributor company for up to 50 percent of the costs associated with the improper payments to HCPs. The scheme continued after the Alcon merger with Novartis. In total, Alcon Pte realized approximately $8,500,000 in profits as a result of the improper payments to the HCPs.
On June 25, 2020, the DOJ filed a single count Information in the District of New Jersey against Alcon Pte alleging a conspiracy to violate the books and records provisions of the FCPA. On the same date, Alcon Pte entered into a deferred prosecution agreement with the DOJ. Under the terms of the agreement, Alcon Pte agreed to pay a fine of $8,925,000, which represents a 25% departure below the bottom of the U.S. Sentencing Guidelines range. In determining the appropriate fine, the DOJ noted the company's cooperation and remediation. Per the terms of the agreement, Alcon Pte and Alcon Inc. agreed to self report on the status of the companies' enhanced anti-corruption compliance policies and procedures.
