US health care major Johnson & Johnson says that certain of its subsidiaries outside the USA made improper payments in connection with the sale of medical devices in two small-market countries.
The firm voluntarily disclosed the information to the US Department of Justice and the Securities and Exchange Commission but did not make public the countries involved, noting that the payments may fall within the jurisdiction of the Foreign Corrupt Practices Act, which deals with payments to foreign officials to keep or win new business. As a result of the probe, Michael Dormer, worldwide chairman of J&J's Medical Devices and Diagnostics, has resigned from the firm, noting that he had "ultimate responsibility by virtue of my position."
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