Mead Johnson settles SEC investigation with $12 million
Mead Johnson Nutrition Co has paid $12 million to the US Securities and Exchange Commission (SEC) to end its investigation into the company’s promotional practices in China between 2008 and 2013.
The SEC made allegations that Mead Johnson, a global paediatrics nutrition company, paid health-care professionals in China to recommend its baby formula.
In a statement, SEC said that certain employees of Mead Johnson’s subsidiary in China made improper payments to certain health care professionals at state-owned hospitals in China to recommend Mead Johnson’s nutrition products to, and provide information about, expectant and new mothers.
It went on to say that from 2008 through to 2013 Mead Johnson China paid approximately $2,070,000 to health care professionals in improper payments and derived profits of approximately $7,770,000. It added the company then failed to accurately reflect the improper payments in its books and records.
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Announcing the settlement on Tuesday, Mead Johnson neither admitted or denied the allegations made by SEC.
"We are pleased to have reached this final resolution with the SEC," Kasper Jakobsen, Mead Johnson’s Chief Executive Officer said in a statement. "Integrity and compliance with laws and regulations are central to the success of our operations around the world. Our China business is one of Mead Johnson's most important operations, and we remain confident in its continued long-term growth.”
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The SEC made allegations that Mead Johnson, a global paediatrics nutrition company, paid health-care professionals in China to recommend its baby formula.
In a statement, SEC said that certain employees of Mead Johnson’s subsidiary in China made improper payments to certain health care professionals at state-owned hospitals in China to recommend Mead Johnson’s nutrition products to, and provide information about, expectant and new mothers.
It went on to say that from 2008 through to 2013 Mead Johnson China paid approximately $2,070,000 to health care professionals in improper payments and derived profits of approximately $7,770,000. It added the company then failed to accurately reflect the improper payments in its books and records.
Announcing the settlement on Tuesday, Mead Johnson neither admitted or denied the allegations made by SEC.
"We are pleased to have reached this final resolution with the SEC," Kasper Jakobsen, Mead Johnson’s Chief Executive Officer said in a statement. "Integrity and compliance with laws and regulations are central to the success of our operations around the world. Our China business is one of Mead Johnson's most important operations, and we remain confident in its continued long-term growth.”
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