Johnson & Johnson ("J&J") was a global pharmaceutical, consumer product, and medical device company headquartered in New Brunswick, NJ. Its securities were registered with the Commission, and its common stock traded on the New York Stock Exchange. J&J operated worldwide through more than 250 operating companies. J&J and its subsidiaries employed more than 100,000 people. In fiscal year 2009, its sales totaled $61.8 billion.
In August 1990, the U.N. adopted Security Council Resolution 661, which prohibited U.N. member-states from transacting business with Iraq, except for the purchase and sale of humanitarian supplies. In April 1995, the U.N. adopted Security Council Resolution 986, a limited exception to Resolution 661 which allowed Iraq to sell its oil so long as the proceeds from oil sales were used by the Iraqi government to purchase humanitarian supplies for the Iraqi people. The U.N. controlled the proceeds from all sales of Iraqi oil and approved payments to suppliers of humanitarian goods. This program became known as the Oil for Food Program. Beginning in approximately August 2000, the Iraqi government demanded that suppliers of humanitarian goods pay a kickback, usually valued at 10% of the contract price, to the Government of the Republic of Iraq in order to be awarded a contract by the government. Suppliers often caused the U.N. to unknowingly fund these improper kickbacks by including the cost of the kickbacks in the contract price.
Since at least 1998 and continuing to early 2006, J&J and its subsidiaries DePuy Inc., DePuy International Ltd., and DePuy Helles S.A. and agents paid bribes to public doctors in Greece who selected J&J surgical implants for their patients. Further, J&J's subsidiary, Johnson & Johnson Poland Sp. z.o.o. and its agents paid bribes to doctors and public hospital administrators in Poland who awarded tenders to J&J from 2000 to 2006. J&J's subsidiary, Johnson & Johnson d.o.o., and its agents also paid bribes to public doctors in Romania to prescribe J&J pharmaceutical products from 2002 to 2007. Finally, J&J's subsidiaries Cilag AG International and Janssen Pharmaceutica N.V. and its agent paid kickbacks to Iraq in order to obtain contracts under the United Nations Oil for Food Program from 2000 to 2003.
On April 8, 2011, the SEC filed a three count Complaint in the District of Columbia against J&J alleging violations of the anti-bribery, books & records, and internal controls provisions of the FCPA. On the same date, J&J entered into a Consent Agreement with the SEC. Under the terms of the agreement, J&J consented to the entry of final judgment without admitting or denying the allegations in the Complaint and to self report for a term of three years on the status of the company's remediation and implementation of compliance measures. On April 13, 2011, the court entered final judgment against J&J. The court permanently enjoined J&J from future violations of the FCPA and ordered the company to disgorge $38,227,826, representing profits gained as a result of the conduct alleged in the Complaint, plus pre-judgment interest of $10,438,490 for a total of $48,666,316.
