Philips settles Polish bribery beef with $4.5M settlement

April 10, 2013 by Arezu Sarvestani

Healthcare technology giant Philips agrees to pay $4.5 million to the U.S. Securities & Exchange Commission to settle a Polish bribery spat.

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Technology giant Philips (NYSE:PHG) agreed to pay a $4.5 million settlement to the U.S. Securities & Exchange Commission to settle an investigation into potential bribery at the company's Polish medical equipment sales division.

The deal would close the books on a years-long U.S. investigation into a bribery scheme that resulted in the firing of 3 Poland employees over violations of the U.S. Foreign Corrupt Practices Act.

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The indicted employees allegedly paid bribes to win sales contracts with hospitals, running the scheme from 1999 to 2006, Bloomberg reported.

Philips reported the situation to U.S. regulatory officials and launched an internal investigation, firing workers connected to the bribery and putting new management in place at the Poland facility.

The company still has to face authorities in Poland, where Philips is in the middle of a lawsuit against the company and 16 hospital leaders accused of taking part in the bribery scheme, according to the new wire.

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