Johnson & Johnson Hit with Suit Over FCPA Settlement

May 8, 2011

I’ve discussed what a shareholder derivative case is  (an action on behalf of the corporation against its officers and directors).

A new wave of derivative litigation is happening for pharmaceutical companies that are investigated and fined by the U.S. for violations of the Foreign Corrupt Practices Act, i.e., bribing foreign officials.

J&J is the latest suit in what is sure to be a long line of cases to come that will assert that boards of directors should implement controls to discourage bribing government officials.

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