GlaxoSmithKline Investigating Possible FCPA Violations in Iraq

April 8, 2014 — One goal of the U.S. Foreign Corrupt Practices Act (FCPA) is to create an even marketplace on a global scale so that honest competitors are not disadvantaged by businesses willing to engage in the bribery of foreign government officials as a way to increase profits. To redress the problem of foreign bribery, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 established a whistleblower program that provides substantial rewards for tipsters whose conscience leads them to notify the U.S. Securities and Exchange Commission (SEC) concerning FCPA violations.

Pharmaceutical giant GlaxoSmithKline has announced that it has launched an internal probe into allegations of foreign bribery in Iraq. The inquiry reportedlyis focused on whether the British drug maker retained doctors and pharmacists employed by the Iraqi government to work as GSK’s sales representatives to promote use of the company’s products.

GSK’s pharmaceuticals business in Iraq has fewer than 60 employees, so the scope of the investigation is quite narrow, targeting just a few staff in Iraq. The allegations first came to the attention of the public when the Wall Street Journal reported that it had seen emails concerning alleged misconduct and corrupt practices in 2012 and 2013. The emails were authored by someone with knowledge about GSK’s operations in the Middle East. One email suggested that the alleged misconduct violated not only the FCPA, but the British Bribery Act, as well.

The qui tam lawyers at Waters & Kraus have worked hard for their success in representing informants willing to collaborate with the SEC. We know that in this economic climate especially, it can be difficult to notify the government about an employer’s FCPA violations. Our whistleblower lawyers are devoted to their clients and to protecting their interests. Contact us or call our FCPA lawyers at 855.784.0268 when you’re ready to work together to fight illegal foreign bribery.