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Friday, March 29, 2024

U.S. reaches $231M deal with German medical products business over bribery scheme

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WASHINGTON (Legal Newsline) — A German medical products and service provider has reached a $231 million settlement with the federal government for its part in operating a "corrupt scheme" to gain business in several foreign countries. 

According to a U.S. Department of Justice (DOJ) March 29 news release, Fresenius Medical Care AG & Co., KGaA (Fresenius) paid millions of dollars in bribes to government and public officials in Angola, Saudi Arabia, Morocco, Spain, Turkey and West African nations in order to gain business. The company, which has admitted to the corruption, also failed to keep proper accounting for its transactions, the DOJ said. 

“Fresenius doled out millions of dollars in bribes across the globe to gain a competitive advantage in the medical services industry, profiting to the tune of over $140 million,” assistant attorney general Brian Benczkowski said in a statement.  

“[This] resolution, under which Fresenius has agreed to retain an independent compliance monitor for at least two years, reflects the department’s firm commitment to both rooting out bribery and promoting the kind of effective corporate compliance programs that will prevent misconduct going forward.”

The settlement includes Fresenius paying an $84,715,274 criminal penalty and, through a non-prosecution agreement with the Justice Department, will cooperate with further investigation, strengthen its compliance program and have an independent corporate compliance monitor.

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