9. June 2011 14:55
The Eli Lilly board of directors and officers are under investigation in the US over alleged violations of the Foreign Corrupt Practices Act (FCPA).
New York securities firm Faruqi & Faruqi is investigating possible breaches of 'fiduciary duties' by the company.
Eli Lilly recently said that it is in advanced talks with the Securities and Exchange Commission (SEC) to resolve a probe.
The FCPA prohibits US publicly traded companies from promising, offering or giving anything of value with the intent of influencing officials for the purpose of helping the company obtain and retain business or gain an improper advantage.
Lilly bosses were notified in 2003 that the SEC was investigating whether Polish divisions of certain pharma companies, including Eli Lilly, had violated the FCPA. The investigation eventually widened to include the company’s activities in other countries.
The SEC has now issued subpoenas requesting documents, and the US Department of Justice has also asked for information about activities in certain countries by Eli Lilly.