Mead Johnson Warns Of Possible Violations In China
NEW YORK (AP) -- Infant formula maker Mead Johnson Nutrition Co. says its Chinese subsidiary may have violated U.S. and local laws, including anti-bribery statutes.
Mead Johnson said in October that the Securities and Exchange Commission was looking into its business practices in China and said it was also conducting its own investigation. The company says some promotional spending violated its own policies, and it may have also broken the Foreign Corrupt Practices Act and local laws. The Glenview, Ill., company said Tuesday its investigation isn't over and it is discussing its inquiry with the SEC.
In 2013 Chinese regulators launched an inquiry into possible price-fixing by Mead Johnson and other foreign companies that sell infant formula. Mead Johnson agreed to cut its prices, change sales and marketing, and pay a $33 million fine.