According to the Securities and Exchange Commission (SEC), GlaxoSmithKline Plc (NYSE:GSK) (GSK) has recently agreed to a $20-million settlement of the bribery charges against its Chinese subsidiaries.
However, GSK has agreed to settle without admitting nor denying the bribery charges. Sarah Spencer, GSK spokesperson, has explained that the company has fully cooperated during the investigation, thereby agreeing to the settlement without having to neither confirm nor deny anything.
Bribery Issues
The SEC has accused the pharmaceutical giant subsidiaries of violating the Foreign Corrupt Practices Act around 2010 to 2013 by giving foreign officials inappropriate gifts in the forms of trips, cash, entertainment, and other luxurious goods. Moreover, the payments during those years had often been classified as legitimate expenses.
As a result of the settlement agreement, the US Department of Justice (DOJ) will cease looking into the matter. However, a US DOJ spokesperson has declined to comment on the news.
GSK has been found guilty of bribery two years ago in a Chinese court of law. Consequently, the company has paid $491.50 million in settlement. At the time, it was considered as the biggest corporate fine in the history of China.
Executive Leadership Changes
In other news, GSK has appointed last week Brian McNamara, GSK Consumer Healthcare Head of Europe and Americas, as the new GSK Consumer Healthcare CEO effective immediately.
McNamara replaced Emma Walmsley, former GSK Consumer Healthcare CEO, who had also been appointed last week as the new GSK CEO Designate replacing Andrew Witty, GSK CEO.
Based in the UK, McNamara continues to be a Board of the Consumer Healthcare Joint Venture Member.
“With his significant experience and expertise, Brian is the clear choice to build on the current momentum we are seeing in our business and fully maximise the future opportunities we have with our brands and to deliver the benefits of the integration,” said Witty of McNamara.
GSK has jumped 0.21% to $43.22 on Monday.
McNamara, on the other hand, is thrilled to be leading the company in realizing its long-term growth prospects and expanding its global reach in the pharmaceutical industry.
