SEC Charges Alexion Pharmaceuticals With FCPA Violations
Alexion Pharmaceuticals Inc. agreed to pay over $21 million to resolve SEC charges that its subsidiaries in Turkey and Russia bribed foreign officials to secure favorable treatment for Soliris, while also maintaining false books and records in Brazil and Colombia, with no admission of guilt but a cease-and-desist order and penalties imposed.
Alexion Pharmaceuticals Inc. agreed to pay $21.48 million to settle SEC charges under the Foreign Corrupt Practices Act, including $14.2 million in disgorgement, $3.8 million in prejudgment interest, and a $3.5 million penalty. The SEC found that Alexion Turkey and Alexion Russia made improper payments to government officials between 2010 and 2015 to influence regulatory approvals and prescription rates for Soliris, while subsidiaries in Brazil and Colombia falsified records related to payments to patient advocacy groups. Alexion’s internal accounting controls failed to detect or prevent these violations, and the company consented to a cease-and-desist order without admitting or denying the allegations.
Alexion Pharmaceuticals Inc. agreed to pay $21,476,531 to resolve SEC charges that it violated the Foreign Corrupt Practices Act by failing to maintain accurate books and records and by having inadequate internal accounting controls. From 2010 to 2015, its Turkish subsidiary paid foreign officials to secure favorable regulatory treatment and increased prescriptions for its drug Soliris, while its Russian subsidiary made similar payments to influence budget allocations and approval processes. In addition, subsidiaries in Brazil and Colombia created or directed third parties to generate false financial records concerning payments to patient advocacy organizations. The SEC determined that Alexion’s internal controls were insufficient to detect or prevent these improper payments across multiple jurisdictions. Without admitting or denying the findings, Alexion consented to a cease-and-desist order and paid $14.2 million in disgorgement, $3.8 million in prejudgment interest, and a $3.5 million penalty. The investigation, led by SEC attorneys Christina McGill and Brittany Hamelers and supervised by Timothy England and Melissa Hodgman, underscored the risks companies face in high-corruption environments. The SEC emphasized that firms with frequent foreign official interactions must implement robust compliance measures to prevent FCPA violations.
Exhibits & Attached Documents (1)
Extracted insights
- $21.00M $21 million $10M–$100M
- $14.21M $14,210,194 $10M–$100M
- $3.77M $3,766,337 $1M–$10M
- $3.50M $3.5 million $1M–$10M
- company alexion pharmaceuticals inc.
- person alexion russia
- person alexion turkey
- person brittany hamelers
- person christina mcgill
- person melissa hodgman
- agency sec investigation into alexion pharmaceuticals inc.
- person timothy england
- Alexion Pharmaceuticals Inc. agreed to pay more than $21 million to resolve FCPA charges
- Alexion Pharmaceuticals Inc. violated books and records and internal accounting controls provisions of the FCPA
- Alexion Turkey paid Turkish government officials to improperly influence approval of Soliris prescriptions
- Alexion Turkey made improper payments from 2010 to 2015
- Alexion Russia made improper payments to Russian government health care officials from 2011 to 2015
- Alexion Russia maintained false books and records of improper payments
- Alexion Turkey maintained false books and records of improper payments
- Alexion subsidiaries in Brazil and Colombia failed to maintain accurate books and records concerning payments to patient advocacy organizations
- Alexion Pharmaceuticals Inc. paid $14,210,194 in disgorgement
- Alexion Pharmaceuticals Inc. paid $3,766,337 in prejudgment interest
- Alexion Pharmaceuticals Inc. paid $3.5 million penalty
- Christina McGill conducted SEC investigation into Alexion Pharmaceuticals Inc.
- Brittany Hamelers conducted SEC investigation into Alexion Pharmaceuticals Inc.
- Timothy England supervised SEC investigation into Alexion Pharmaceuticals Inc.
- Melissa Hodgman supervised SEC investigation into Alexion Pharmaceuticals Inc.
The Securities and Exchange Commission today announced that Boston-based pharmaceutical company Alexion Pharmaceuticals Inc. has agreed to pay more than $21 million to resolve charges that it violated the books and records and internal accounting controls provisions of the Foreign Corrupt Practices Act (FCPA). According to the SEC’s order, two Alexion subsidiaries made payments to foreign government officials to secure favorable treatment for Alexion’s primary drug, Soliris. The order finds that, from 2010 to 2015, Alexion Turkey paid Turkish government officials to improperly influence them to approve patient prescriptions and provide other favorable regulatory treatment for Soliris. The order similarly finds that from 2011 to 2015, Alexion Russia made improper payments to Russian government health care officials to favorably influence the regulatory treatment of and the budget allocated to Soliris as well as to increase the number of approved Soliris prescriptions. Alexion Russia and Alexion Turkey maintained false books and records of these improper payments, which Alexion’s internal accounting controls were not sufficient to detect or prevent. Further, the order finds that Alexion’s subsidiaries in Brazil and Colombia failed to maintain accurate books and records, including by creating or directing third parties to create inaccurate financial records concerning payments to patient advocacy organizations. “Alexion’s internal accounting controls failed to detect and prevent payments to foreign government officials by its subsidiaries,” said Melissa Hodgman, an Associate Director in the SEC’s Division of Enforcement. “Companies in frequent contact with foreign officials need to ensure that their internal controls appropriately address such risks.” Without admitting or denying the SEC’s findings, Alexion agreed to cease and desist from committing violations of the books and records and internal accounting controls provisions of the FCPA and pay $14,210,194 in disgorgement, $3,766,337 in prejudgment interest, and a $3.5 million penalty. The SEC’s investigation was conducted by Christina McGill and Brittany Hamelers. The investigation was supervised by Timothy England and Melissa Hodgman.
The Securities and Exchange Commission today announced that Boston-based pharmaceutical company Alexion Pharmaceuticals Inc. has agreed to pay more than $21 million to resolve charges that it violated the books and records and internal accounting controls provisions of the Foreign Corrupt Practices Act (FCPA). According to the SEC’s order, two Alexion subsidiaries made payments to foreign government officials to secure favorable treatment for Alexion’s primary drug, Soliris. The order finds that, from 2010 to 2015, Alexion Turkey paid Turkish government officials to improperly influence them to approve patient prescriptions and provide other favorable regulatory treatment for Soliris. The order similarly finds that from 2011 to 2015, Alexion Russia made improper payments to Russian government health care officials to favorably influence the regulatory treatment of and the budget allocated to Soliris as well as to increase the number of approved Soliris prescriptions. Alexion Russia and Alexion Turkey maintained false books and records of these improper payments, which Alexion’s internal accounting controls were not sufficient to detect or prevent. Further, the order finds that Alexion’s subsidiaries in Brazil and Colombia failed to maintain accurate books and records, including by creating or directing third parties to create inaccurate financial records concerning payments to patient advocacy organizations. “Alexion’s internal accounting controls failed to detect and prevent payments to foreign government officials by its subsidiaries,” said Melissa Hodgman, an Associate Director in the SEC’s Division of Enforcement. “Companies in frequent contact with foreign officials need to ensure that their internal controls appropriately address such risks.” Without admitting or denying the SEC’s findings, Alexion agreed to cease and desist from committing violations of the books and records and internal accounting controls provisions of the FCPA and pay $14,210,194 in disgorgement, $3,766,337 in prejudgment interest, and a $3.5 million penalty. The SEC’s investigation was conducted by Christina McGill and Brittany Hamelers. The investigation was supervised by Timothy England and Melissa Hodgman.