Distributors Expose Health, Life Sci Cos. To FCPA Risks

Law360 (August 14, 2018, 2:54 PM EDT) -- Health care and life sciences companies with operations in the United States and abroad face increased liability arising from their common reliance on third-party distributors in international markets. Third-party distributors are often responsible for the direct marketing and selling of a company’s products outside of the U.S. and provide value to multinational companies based upon their presence in local markets, including experience with local regulatory authorities, relationships with local businesses and established on-the-ground infrastructures and resources.

The U.S. Foreign Corrupt Practices Act and other nations’ anti-corruption laws specifically hold companies accountable for the actions of third parties, which may give rise...

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