Phillips reaches €58 mil. settlement with U.S. authorities over corruption in China

Philips reached a settlement of 62 million dollars, around 58 million euros, with the American stock exchange watchdog SEC over corruption in China. According to the SEC, Philips illegally influenced employees at Chinese hospitals to sell its equipment.

According to the SEC, Philips paid a hospital director to help with tender procedures, gave discounts to distributors, knowing they could use the extra profit margin to bribe officials, and influenced hospital administrators to set favorable criteria in their tenders. The medical technology company thus violated the bribery law, the regulator said.

The settlement amount consists of a 15 million dollars fine and 47 million dollars in profit that Philips allegedly obtained illegally.

Philips agreed to the settlement, but stressed that it does not admit nor deny guilt, according to NOS.

The settlement is another financial blow for the medical tech company, which is losing millions around a long-dragging recall of its sleep apnea devices and respirators.