GSK falls 1.4% at opening of trading in response to SFO criminal investigation

28th May 2014

GlaxoSmithKline fell 1.4% at the opening of trading as the market reacted to the news that that the firm is facing a criminal investigation by the Serious Fraud Office.

The SFO has asked for whistle blowers to come forward though it is not clear in what particular areas. The firm has faced accusations of bribery internationally which could have implications in UK law too under the UK bribery act.  It is thought likely to be related to investigations in China, Poland and perhaps Jordan, Lebanon and Iraq.

The SFO said: “We welcome approaches from anyone with inside information on all our cases including this one.”

In China the firm has been accused of channelling money to local government and hospital officials and doctors to secure drug orders with three executives charged with corruption.

A GSK statement said: “GSK is committed to operating its business to the highest ethical standards and will continue to cooperate fully with the SFO.”

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