Fresenius Medical Care, the world’s largest provider of dialysis products and services, has decided to establish a provision in the total amount of EUR 200m in its 2017 annual financial statements with respect to its ongoing settlement negotiations with the U.S. government regarding conduct that may have violated provisions of the U.S. Foreign Corrupt Practices Act (FCPA).
This provision takes into account recent developments in the ongoing settlement negotiations with the U.S. Department of Justice and the U.S. Securities Exchange Commission. The provision represents an estimate from a range of potential outcomes. The charge encompasses government agencies’ claims for profit disgorgement, as well as accruals for fines and/or penalties, certain legal and other consultancy expenses and other related costs or asset impairments. In 2012, Fresenius Medical Care voluntarily advised the U.S. Department of Justice and the U.S. Securities Exchange Commission about its investigations into this conduct.
The settlement negotiations are continuing and have not yet achieved an agreement-in-principle; failure to reach agreement remains possible.