Title Title
Johnson & Johnson, Philips' operations in Brazil accused of operating illegal cartel Johnson & Johnson, Philips' operations in Brazil accused of operating illegal cartel
Summary Summary
Multinational health-care companies in Brazil are alleged to have conspired to fix prices of medical devices, from 1996 till 2017 Multinational health-care companies in Brazil are alleged to have conspired to fix prices of medical devices, from 1996 till 2017
Highlights Highlights
Content Content
Subsidiaries of <a href="https://en.wikipedia.org/wiki/Johnson_%26_Johnson">Johnson &amp; Johnson</a> and <a href="https://en.wikipedia.org/wiki/Philips">Philips</a> in Brazil have been accused of operating a cartel to manipulate the prices of health-care equipment in the country. The cartel, is alleged by prosecutors, to have operated for nearly 20 years from 1996 until 2017. The cartel has been nicknamed the "international auctions club", and is alleged to contain at least 33 organizations lead by Brazilian medical instrument distributors <a href="https://www.bloomberg.com/profiles/companies/6172039Z:BZ-oscar-iskin-&amp;-cia-ltda">Oscar Iskin &amp; Cia Ltda</a>. (<a href="https://www.yahoo.com/news/ges-latin-american-ceo-21-others-arrested-brazil-205633648.html"><em>AFP</em></a>) Subsidiaries of <a href="https://en.wikipedia.org/wiki/Johnson_%26_Johnson">Johnson &amp; Johnson</a> and <a href="https://en.wikipedia.org/wiki/Philips">Philips</a> in Brazil have been accused of operating a cartel to manipulate the prices of health-care equipment in the country. The cartel, is alleged by prosecutors, to have operated for nearly 20 years from 1996 until 2017. The cartel has been nicknamed the "international auctions club", and is alleged to contain at least 33 organizations lead by Brazilian medical instrument distributors <a href="https://www.bloomberg.com/profiles/companies/6172039Z:BZ-oscar-iskin-&amp;-cia-ltda">Oscar Iskin &amp; Cia Ltda</a>. (<a href="https://www.yahoo.com/news/ges-latin-american-ceo-21-others-arrested-brazil-205633648.html"><em>AFP</em></a>)
"Top executives from multinational medical equipment manufacturers arranged among themselves who would win contracts by paying a 13 percent commission on those contracts to Iskin," alleged the Rio de Janeiro prosecutor’s office statement. (<a href="https://www.yahoo.com/news/ges-latin-american-ceo-21-others-arrested-brazil-205633648.html"><em>AFP</em></a>) "Top executives from multinational medical equipment manufacturers arranged among themselves who would win contracts by paying a 13 percent commission on those contracts to Iskin," alleged the Rio de Janeiro prosecutor’s office statement. (<a href="https://www.yahoo.com/news/ges-latin-american-ceo-21-others-arrested-brazil-205633648.html"><em>AFP</em></a>)
On July 5, 2017, police executed arrest warrants for the current CEO of <a href="https://en.wikipedia.org/wiki/General_Electric">General Electric</a> Latin America, Daurio Speranzini Jr., and 22 other suspects. Speranzini was arrested for his time employed at Philips Medical Systems, prior to taking the position at GE; prosecutors have not stated that General Electric is a target of the anti-corruption probe. However, the Brazilian headquarters of Johnson &amp; Johnson and Philips along with 42 other sites were raided as part of the investigation, according to police. (<a href="https://www.wsj.com/articles/brazilian-police-search-philips-offices-1530744553"><em>Wall Street Journal</em></a>) On July 5, 2017, police executed arrest warrants for the current CEO of <a href="https://en.wikipedia.org/wiki/General_Electric">General Electric</a> Latin America, Daurio Speranzini Jr., and 22 other suspects. Speranzini was arrested for his time employed at Philips Medical Systems, prior to taking the position at GE; prosecutors have not stated that General Electric is a target of the anti-corruption probe. However, the Brazilian headquarters of Johnson &amp; Johnson and Philips along with 42 other sites were raided as part of the investigation, according to police. (<a href="https://www.wsj.com/articles/brazilian-police-search-philips-offices-1530744553"><em>Wall Street Journal</em></a>)
Johnson &amp; Johnson, and Koninklijke Philips N.V. have both released statements stating they are cooperating fully with authorities. (<a href="https://www.reuters.com/article/us-brazil-fraud/brazil-police-arrest-ge-latin-america-head-21-others-in-probe-idUSKBN1JU2DF"><em>Reuters</em></a>) Johnson &amp; Johnson, and Koninklijke Philips N.V. have both released statements stating they are cooperating fully with authorities. (<a href="https://www.reuters.com/article/us-brazil-fraud/brazil-police-arrest-ge-latin-america-head-21-others-in-probe-idUSKBN1JU2DF"><em>Reuters</em></a>)
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