Novo Nordisk A/S (ADR) Under Investor Investigation Over Potential Foreign Bribery

An investigation on behalf of current long term investors in Novo Nordisk A/S (ADR) (NYSE:NVO) in connection with possible violations of the U.S. Foreign Corrupt Practices Act was announced.

Novo Nordisk A/S is a Denmark-based health care company. It also focuses within areas, such as haemostasis management, growth hormone therapy and hormone replacement therapy.

According to the investigation by a law firm the investigation on behalf of current long term investors in Novo Nordisk A/S (ADR) (Public, NYSE:NVO) 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.”

Novo Nordisk A/S (ADR) reported Total Revenue of $38.743billion in 2006, $41.831billion in 2007, $45.553billion in 2008, and $51.078billion in 2009.

Nearly a dozen companies have already settled foreign bribery charges with prosecutors in a string of cases that started in 2002. In 2009 Novo Nordisk A/S (Novo) agreed to pay a $9 million penalty for illegal kickbacks paid to the former Iraqi government. According to the US Department of Justice Novo Nordisk paid approximately $1.4 million to the former Iraqi government by inflating the price of contracts by 10 percent before submitting the contracts to the United Nations for approval and concealed from the United Nations the fact that the price contained a kickback to the former Iraqi government.