Eli Lilly & Co. Under Investor Investigation Over Potential Foreign Bribery

If you are a current long term investor in Eli Lilly & Co. (NYSE:LLY), and/or have any information relating the investigation, you have certain options and you should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this investigation, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.

Company Name(s):

Eli Lilly

Affected Securities:

NYSE: LLY

An investigation on behalf of current long term investors in Eli Lilly & Co. (NYSE:LLY) in connection with possible violations of the U.S. Foreign Corrupt Practices Act was announced.

Eli Lilly and Company, located in Indianapolis, IN, discovers, develops, manufactures, and sells products in one business segment, pharmaceutical products. According to the investigation by a law firm the investigation on behalf of current long term investors in Eli Lilly & Co. (Public, NYSE:LLY) stocks focuses on potential violations of the U.S. Foreign Corrupt Practices Act (“FCPA”), which prohibits companies from making improper payments to foreign officials for the purpose of obtaining or keeping business. According to the Justice Department “The Foreign Corrupt Practices Act was enacted for the purpose of making it unlawful for certain classes of persons and entities to make payments to foreign government officials to assist in obtaining or retaining business. Specifically, the anti-bribery provisions of the FCPA prohibit the willful use of the mails or any means of instrumentality of interstate commerce corruptly in furtherance of any offer, payment, promise to pay…to a foreign official to influence the foreign official in his or her official capacity … to secure any improper advantage in order to assist in obtaining or retaining business for or with, or directing business to, any person.”

Eli Lilly & Co. increased its total revenue from $15.691billion in 2006, to $18.6335billion in 2007, to $20.3719billion in 2008, and to $21.836billion in 2009.

Nearly a dozen companies have already settled foreign bribery charges with prosecutors in a string of cases that started in 2002.

Eli Lilly & Co. disclosed that in August 2003, it received notice that the staff of the SEC is conducting an investigation into the compliance by Polish subsidiaries of certain pharmaceutical companies, including Lilly, with the U.S. Foreign Corrupt Practices Act of 1977.

Eli Lilly & Co. said that the SEC has issued subpoenas to Eli Lilly requesting production of documents related to the investigation. In connection with that matter, staffs of the SEC and the Department of Justice (DOJ) have expanded their investigation and have asked Eli Lilly & Co. to voluntarily provide additional information related to certain activities of Lilly affiliates in a number of other countries. The SEC staff has also issued a subpoena related to activities in these countries. Eli Lilly & Co. said it is cooperating with the SEC and the DOJ in this investigation.

Shares of Eli Lilly & Co. traded recentl at $34.66 per share, down from its 52weekHigh of $38 per share, $56.81 per share in 2008, and over $60 per share during 2007.