Update: China fines GSK $490 million after bribery conviction
Pharmaceutical giant GlaxoSmithKline was fined $490 million earlier today by a court in China for violations of Chinese anti-corruption law. The bribery conviction also included criminal sentences for individual executives, including a suspended prison sentence and an ordered deportation for GSK’s British former head of China operations.
China first accused GSK of paying bribes to doctors and other health officials to increase sales in 2013. As we mentioned in our Corporate Counsel article earlier this year, “with the increased focus by Chinese regulators on anticorruption enforcement, companies must work to understand Chinese anticorruption law and take appropriate remedial measures in response.”
It is an understatement to say this fine should reinforce the need for companies to create policies and procedures responsive to not only FCPA requirements, but also local anti-corruption laws.
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