Chinese court fines GlaxoSmithKline almost $500 million for paying bribes
A Chinese court imposed a fine of nearly $500 million on the giant British pharmaceutical company GlaxoSmithKline for bribery, according to a New York Times report Friday.
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The fine of a record 3 billion yuan ($489 million) was imposed after a Changsha court ruled , in a one-day trial held in secrecy, the company was paying bribes to doctors to use their drugs.
The verdict follows investigations initiated by China’s Ministry of Public Security in June 2013.
In addition, suspended jail sentences were handed down to the former head of GSK in China, Mark Reilly and four other GSK executives.
There will be no appeal to the ruling and Glaxo said in a statement that it “fully accepts the facts and evidence of the investigation, and the verdict of the Chinese judicial authorities.”
The company notes that the illegal activities of GSK China Investment Co. Ltd (GSKCI) are a clear breach of GSK’s governance and compliance procedures; and are wholly contrary to the values and standards expected from GSK employees. GSK has published a statement of apology to the Chinese government and its people on its website (www.gsk-china.com).
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