Johnson & Johnson has voluntarily disclosed to the U.S. Department of Justice (DOJ) and the U.S. Securities and Exchange Commission (SEC) that subsidiaries outside the United States are believed to have made improper payments in connection with the sale of medical devices in two small-market countries. The actions were contrary to the company's policies, and the payments may fall within the jurisdiction of the Foreign Corrupt Practices Act. The company said it will provide additional information to DOJ and SEC, and will cooperate with the agencies' reviews of these matters.

The executive who oversaw the subsidiaries in question has retired effective February 12, 2007, the date of the disclosure by the company. Michael J. Dormer was worldwide chairman of Medical Devices & Diagnostics. In a letter to Johnson & Johnson, Dormer cited the internal review of this matter and noted he had "ultimate responsibility by virtue of my position" for those subsidiaries.

Effective immediately, all worldwide businesses within the Medical Devices & Diagnostics segment will report to Nicholas J. Valeriani, worldwide chairman, medical devices & diagnostics, a J&J executive with nearly 30 years' experience. Valeriani now has responsibility for businesses previously under the management oversight of Dormer, in addition to those for which he is already responsible.

Details are sketchy so far and J&J has not released which markets are involved, AP reports.

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