Germany-based Fresenius Medical Care, a provider of dialysis products and services, disclosed this week that it has set aside €200 million concerning its ongoing settlement negotiations with the U.S. government regarding potential violations of the Foreign Corrupt Practices Act.
The provision concerns recent developments in the ongoing settlement negotiations with the U.S. Department of Justice and the U.S. Securities Exchange Commission. “The provision represents an estimate from a range of potential outcomes: The charge encompasses government agencies’ claims for profit disgorgement, as well as accruals for fines and/or penalties, certain legal and other consultancy expenses, and other related costs or asset impairments,” the company stated.
In 2012, Fresenius Medical Care said it voluntarily advised the Justice Department and the SEC about its investigations into this conduct. “The settlement negotiations are continuing and have not yet achieved an agreement-in-principle; failure to reach agreement remains possible,” the company stated.