Johnson & Johnson, the Fortune 500 pharmaceutical company, has agreed to pay out $70m in settlement of bribery and kickback allegations designed to win over business overseas. $21.4m of the fine is to settle criminal charges, while $48.6m will go to the SEC (Securities and Exchange commission) for disgorgement and interest to settle charges.

The Obama administration announced that it would put the business practices of pharmaceutical giants under scrutiny in late ’09, though this is the first such settlement since the Justice Department announced the measures.

The investigation was sparked after it was made clear that many companies in the industry were bribing overseas officials to gain favour in their respective countries. J & J were sued for being in breach of the Foreign Corrupt Practices Act, including illegal kickbacks to the war-torn Iraq in order to advance business and bribing public doctors across Europe.

In 2007, J & J voluntarily disclosed to the Department of Justice and SEC that its subsidiaries outside of the US may have been involved in improper payments and improper business practices.

Reported by Michael Jordison.

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