According to the companies’ admissions executives and Russian employees paid bribes to a high-ranking Russian government official intending to influence the official to use his authority to increase sales of the company's multiple sclerosis drug, Copaxone, in annual drug purchase auctions held by the Russian Ministry of Health. The corrupt arrangement occurred at the same time that the Russian government was seeking to reduce the amount spent on costly foreign pharmaceutical products, such as Copaxone. Between 2010 and at least 2012, pursuant to an agreement with a repackaging and distribution company owned by the Russian government official, the company earned more than $200 million in profits on Copaxone sales to the Russian government. Moreover, the Russian official earned approximately $65 million in corrupt profits through inflated profit margins granted to the official’s company.
In related proceedings, the U.S. Securities and Exchange Commission (SEC) filed a cease and desist order against the company, whereby the company agreed to pay approximately $236 million in disgorgement to the SEC, including prejudgment interest. Thus, the combined total amount of U.S. criminal and regulatory penalties to be paid by the company is nearly $520 million.
To read the entire DOJ Press Release please follow this link: $520M for FCP Violations