The Department of Justice (DOJ) recently reached a deferred prosecution agreement with Taro Pharmaceuticals, a multinational pharmaceutical company based out of Canada. This agreement comes after Taro was found to have violated the Foreign Corrupt Practices Act (FCPA).

The FCPA prohibits companies from engaging in bribery or other corrupt practices in order to obtain or retain business overseas. Taro was found to have used sham consultants and other corrupt practices to secure business in Russia, as well as to avoid taxes and other regulatory requirements.

Under the terms of the agreement, Taro must pay a $205 million penalty, cooperate fully with ongoing investigations, and implement strict compliance measures. If Taro meets all of these requirements, the charges against them will be dismissed after three years.

The DOJ`s decision to enter into a deferred prosecution agreement with Taro highlights the importance of companies taking proactive measures to prevent corruption. By implementing robust compliance measures and reporting any potential violations, companies can avoid costly penalties and legal action.

It`s also important to note that the DOJ has increased its enforcement of the FCPA in recent years, with a focus on the pharmaceutical industry. Companies in this industry, as well as those doing business overseas in general, must be especially vigilant in ensuring that they comply with all relevant regulations and laws.

Overall, the Taro deferred prosecution agreement serves as a reminder of the importance of vigilance and compliance in the face of increasingly strict anti-corruption laws. Companies must take a proactive approach to preventing corrupt practices, and a failure to do so can result in significant financial penalties and damage to their reputation.