Date: December 20, 2012
For Release: Immediately
Refer to: Mark E. Taylor (317)
276-5795
Lilly Reaches Agreement with U.S. Securities and Exchange
Commission
INDIANAPOLIS, IN - Eli Lilly
and Company (NYSE: LLY) today announced that it has reached an
agreement with the U.S. Securities and Exchange Commission (SEC) to
settle issues regarding compliance with the U.S. Foreign Corrupt
Practices Act (FCPA). The settlement relates to an investigation by
the SEC of certain activities of four Lilly affiliates -
Brazil, China, Poland
and Russia - from 1994 through
2009. Lilly was first notified of the investigation in August 2003. Without admitting or denying the
allegations, Lilly has consented to pay a civil settlement amount
of $29.4 million and agreed to have
an independent compliance consultant conduct a 60-day review of the
company's internal controls and compliance program related to the
FCPA. The company believes that this civil settlement brings
resolution to issues from the past and is in the best interest of
the company.
"Lilly requires our employees to act with integrity with all
external parties and in accordance with all applicable laws and
regulations," said Anne Nobles,
Lilly's chief ethics and compliance officer and senior vice
president of enterprise risk management. "Since ours is a business
based on trust, we strive to conduct ourselves in an ethical way
that is beyond reproach. We have cooperated with the U.S.
government throughout this investigation and have strengthened our
internal controls and compliance program globally, including
significant investment in our global anti-corruption program. "
The SEC noted that since the time of the conduct alleged in its
complaint, Lilly has made improvements to its global
anti-corruption compliance program, including: enhancing
anti-corruption due diligence requirements for relationships with
third parties; implementing compliance monitoring and corporate
auditing specifically tailored to anti-corruption; enhancing
financial controls and governance; and expanding anti-corruption
training throughout the organization.
Lilly, a leading innovation-driven corporation, is developing a
growing portfolio of pharmaceutical products by applying the latest
research from its own worldwide laboratories and from
collaborations with eminent scientific organizations. Headquartered
in Indianapolis, Ind., Lilly
provides answers - through medicines and information - for some of
the world's most urgent medical needs. Additional information about
Lilly is available at www.lilly.com.
Some statements in this press release may be forward-looking
statements, including but not limited to statements regarding the
final resolution of the FCPA investigation and the efficacy of the
Lilly's internal controls to prevent future legal, regulatory, or
compliance issues. These statements are subject to risks and
uncertainties that may cause actual results to differ materially
from anticipated results. For further discussion of risks and
uncertainties affecting the company's business, see Lilly's filings
with the United States Securities and Exchange Commission. Lilly
undertakes no duty to update forward-looking statements.
# # #
Eli Lilly and Company
Lilly Corporate Center
Indianapolis, Indiana 46285
U.S.A.
www.lilly.com
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