Alere Settles Accounting Fraud and FCPA Charges for $13 Million

Alere, a public company that manufactures and sells diagnostic tests, has resolved SEC charges that it misstated its revenue and bribed government officials in Colombia (through a sham consulting agreement arranged by a newly bought subsidiary) and India (with a commission paid by a third-party distributor). In the combined settlement, Alere agreed to pay $3.3 million in disgorgement, interest of about $495,000 and a penalty of $9.2 million. A DOJ investigation is ongoing. With these investigations, among other things, dragging down the deal, Abbott Laboratories agreed to buy Alere in April 2017 for $500 million less than a previously announced price. See “How to Use Data Analytics to Mitigate Risk When Conducting Post-Acquisition Diligence and Integration Activities” (Oct. 4, 2017).

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