FAMILY-OWNED pharmaceutical company, Alkaloids of Australia, has been handed a $1,987,500 fine for it's role in a global price fixing cartel by the Federal Court.
The company entered guilty pleas to charges of criminal cartel conduct and price fixing last year (PD 16 Nov 2021).
The company, which produces scopolamine N-butylbromide, an ingredient in antispasmodic medications, entered guilty pleas to charges related to colluding with overseas producers on prices, markets and bids for tenders over a seven-year period, driving up prices for consumers.
Alkaloids of Australia's former export manager, Christopher Joyce, was also convicted in relation to the same offences, and was sentenced to two years and eight months imprisonment to be served as an intensive corrections order, including 400 hours of community service (PD 26 Oct 2021).
Joyce was also disqualified from managing corporations for five years and fined $50,000.
Australian Competition and Consumer Commission (ACCC) Commissioner, Liza Carver, backed the Court's ruling.
"We welcome these outcomes, which should serve as a strong reminder that criminal cartel conduct is a serious offence attracting serious consequences, including significant fines, banning orders, and imprisonment for individuals," she said.
"The sentence imposed on Joyce is the longest sentence of imprisonment imposed on an individual under the criminal cartel laws so far."
Criminal cartel laws came into force in Australia in Jul 2009.
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