SEC.gov | Smith & Nephew PLC
!function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}();
{"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/511806","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"field_group":{"html_element":{"mode":"default","context":"view","settings":{"classes":"rightrail-list","show_empty_fields":false,"id":"","element":"div","show_label":true,"label_element":"h2","label_element_classes":"","attributes":"","effect":"none","speed":"fast"}}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}}
Skip to search field
Skip to main content
An official website of the United States government
Here’s how you know
Here’s how you know
Official websites use .gov
A .gov website belongs to an official government organization in the United States.
Secure .gov websites use HTTPS
A lock
( Lock A locked padlock )
or https:// means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
SEC homepage
Menu
Close
Search SEC.gov & EDGAR
Search
Search Filings
Search Filings
Full Text Search
Latest Filings
Mutual Fund Search
Variable Insurance Products Search
SIC Codes
CIK Lookup
Public Dissemination Service (PDS)
Search Assistance
Submit Filings
Submit Filings
EDGAR Filer Management Portal
EDGAR Filing Portal
Online Forms Management Portal
EDGAR Next
Forms Index
Filer Support & Resources
Data & Research
Data & Research
Data Library
Statistics & Data Visualizations
Structured Data
Investment Management Data
Open Data at the SEC
Rules, Enforcement, & Compliance
Rules & Regulations
Rulemaking Activity
Submit Public Comments
Staff Guidance
No-Action, Interpretive, and Exemptive Letters
Self-Regulatory Organization Rulemaking
Public Petitions for Rulemaking
Enforcement & Litigation
Litigation Releases
Administrative Proceedings
Administrative Law Judge Orders and Initial Decisions
Trading Suspensions
Distributions to Harmed Investors
Receiverships
Compliance
Examination Priorities
Risk Alerts
Compliance Outreach Program
Proposed Rules
What's New
Whistleblower Program
Featured Topics
Featured Topics
Crypto Task Force
Cybersecurity
Market Structure Analytics
Saving and Investing for Military Personnel
Saving and Investing for Teachers
SEC-CFTC Harmonization Initiative
Treasury Clearing Implementation
About
About
Mission
Commissioners
Divisions & Offices
Division & Office Directors
Advisory Committees
Budget & Performance
Reports & Publications
Commission Votes
Contact the SEC
Careers
Submit a Tip or Complaint
Newsroom
|
Investors
Small Businesses
Whistleblowers
Newsroom
|
Investors
Small Businesses
Whistleblowers
Search SEC.gov & EDGAR
Search
More in this Section
Enforcement & Litigation
Litigation Releases
Administrative Proceedings
Administrative Law Judge Orders and Initial Decisions
Trading Suspensions
Distributions to Harmed Investors
Receiverships
Electronic Filings in Administrative Proceedings (eFAP)
Rules of Practice
Applications for Reentry
Reports of Investigations
Whistleblower Program
Public Alert: Unregistered Soliciting Entities (PAUSE)
SEC Action Lookup - Individuals (SALI)
Enforcement Data Delivery Standards
Small Businesses
Appellate Briefs
Amicus / Friend of the Court Briefs
Enforcement & Litigation
Litigation Releases
Administrative Proceedings
Administrative Law Judge Orders and Initial Decisions
Trading Suspensions
Distributions to Harmed Investors
Receiverships
Electronic Filings in Administrative Proceedings (eFAP)
Rules of Practice
Applications for Reentry
Reports of Investigations
Whistleblower Program
Public Alert: Unregistered Soliciting Entities (PAUSE)
SEC Action Lookup - Individuals (SALI)
Enforcement Data Delivery Standards
Small Businesses
Appellate Briefs
Amicus / Friend of the Court Briefs
Home
Enforcement and Litigation
Litigation Releases
Smith & Nephew PLC
Smith & Nephew PLC
U.S. Securities and Exchange Commission
Litigation Release 22252 / February 6, 2012
Accounting and Auditing Enforcement Release No. 3363 / February 6, 2012
Securities and Exchange Commission v. Smith & Nephew PLC, Civil Action No. 1: 12-CV-00187 (D.D.C.)(GK) (February, 6, 2012)
SEC CHARGES SMITH & NEPHEW PLC WITH FOREIGN BRIBERY
The Securities and Exchange Commission today announced a settlement with Smith & Nephew PLC to resolve SEC charges that the global medical device company violated the Foreign Corrupt Practices Act (FCPA) when its subsidiaries bribed public doctors in Greece for more than a decade. Smith & Nephew PLC, headquartered in London, England, is a global medical device company with operations around the world.
The SEC alleges that, from 1997 to June 2008, two of Smith &Nephew PLC's subsidiaries, including its U.S. subsidiary, Smith & Nephew Inc., used a distributor to create a slush fund to make illicit payments to public doctors employed by government hospitals or agencies in Greece. Smith &Nephew PLC agreed to settle the SEC's charges by paying more than $5.4 million in disgorgement and prejudgment interest. Smith &Nephew PLC's U.S. subsidiary, Smith & Nephew Inc., agreed to pay a $16.8 million fine to settle parallel criminal charges announced by the U.S. Department of Justice today.
The SEC's complaint alleges that, starting in 1997, Smith &Nephew PLC's subsidiaries developed a scheme to create an offshore fund to pay Greek public doctors to purchase products from two Smith &Nephew PLC subsidiaries, Smith & Nephew Inc. and Smith & Nephew GmbH. According to the complaint, Smith &Nephew PLC's subsidiaries made payments to a total of three shell entities in the United Kingdom controlled by the distributor that were used to pay bribes. The complaint alleges that on paper, it appeared as if Smith &Nephew PLC's subsidiaries were paying for marketing services, but no services were actually performed. The complaint also alleges that Smith &Nephew PLC failed to act on numerous red flags of bribery and that employees at Smith &Nephew PLC and its subsidiaries were aware of the payments.
Smith &Nephew PLC has consented, without admitting or denying the SEC's allegations, to the entry of a court order permanently enjoining it from future violations of Sections 30A, 13(b)(2)(A), and 13(b)(2)(B) of the Securities Exchange Act of 1934; ordering it to pay $4,028,000 in disgorgement and $1,398,799 in prejudgment interest; and ordering it to retain an independent compliance monitor for a period of eighteen months to review its FCPA compliance program.
The SEC acknowledges the assistance of the U.S. Department of Justice, Fraud Section and the Federal Bureau of Investigation. The SEC's investigation into the medical device industry is continuing.
SEC Complaint in this matter
Resources
SEC Complaint
Return to top
SEC homepage
About the SEC
Budget & Performance
Careers
Commission Votes
Contact
Contracts
Transparency
Accessibility & Disability
Super Intelligence
FOIA
Inspector General
No FEAR Act Data
Ombuds
SEC Excess Personal Property Guidance
Websites
Investor.gov
Related Sites
USA.gov
Site Information
Plain Writing
Privacy & Security
Site Map
Stay connected. Sign up for email updates.
Your email address
Sign Up
X
Facebook
Instagram
RSS
YouTube
Email Updates
SEC.gov | Smith & Nephew PLC
!function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}();
{"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/511806","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"field_group":{"html_element":{"mode":"default","context":"view","settings":{"classes":"rightrail-list","show_empty_fields":false,"id":"","element":"div","show_label":true,"label_element":"h2","label_element_classes":"","attributes":"","effect":"none","speed":"fast"}}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}}
Skip to search field
Skip to main content
An official website of the United States government
Here’s how you know
Here’s how you know
Official websites use .gov
A .gov website belongs to an official government organization in the United States.
Secure .gov websites use HTTPS
A lock
( Lock A locked padlock )
or https:// means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.