Royal Philips Electronics (NYSE:PHG) said it launched a probe into its Polish division’s medical equipment sales operation after authorities there indicted three former employees more than a year ago.
The Dutch consumer and healthcare conglomerate said it’s investigating possible violations of the U.S. Foreign Corrupt Practices Act as a result of the indictments, which came down in December 2009.
"Philips has reported the review to the U.S. Dept. of Justice and the U.S. Securities & Exchange Commission and is cooperating with these authorities in connection with the review," according to the company’s annual report.
The indictment charged the three former Philips Polska workers and "numerous" people "involved in the sale of medical equipment to hospitals in Poland," according to the report, which warned that penalties for FCPA violations include fines and "criminal sanctions."
"The company cannot at this time quantify meaningfully the possible loss or range of loss to which this matter may give rise," Philips said.
