Tuesday, February 13, 2007

J&J - improper payments and the Foreign Corrupt Practices Act

SAN FRANCISCO (Dow Jones) -- Johnson & Johnson has told federal prosecutors and regulators that that units outside the U.S. are believed to have made improper payments in two small-market countries, according to a Monday evening statement from the company.

In connection, Michael Dormer has retired as worldwide chairman of Medical Devices & Diagnostics. Dormer cited the internal review of the improper payments, noting that he had "ultimate responsibility by virtue of my position," according to the company statement.

J&J said the payments may fall within the jurisdiction of the Foreign Corrupt Practices Act. A company spokesman declined to provide further details. However, J&J said it will provide additional information to the Justice Department and Securities and Exchange Commission investigators and will cooperate with their reviews.

Source

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