Becton Dickinson discloses resolution with SEC over Alaris System invesigation

Becton Dickinson (BDX) issued the following statement: “BD has reached an agreement with the U.S. Securities and Exchange Commission (SEC) to resolve the previously disclosed investigation related to prior public disclosures and SEC reporting regarding the BD Alaris System, which was acquired by BD from CareFusion in 2015 and is part of the BD Medication Management Solutions business. The SEC Order, the findings of which BD neither admits nor denies, relate to matters concerning BD Alaris that occurred more than four years ago. As part of the settlement, BD has agreed to pay $175 million to the SEC, an amount that was reserved and disclosed in the company’s fiscal year 2024 Form 10-K and was contemplated in BD’s fiscal year 2025 cash flow plan. No financial restatements are required as a result of the settlement, and the settlement amount does not impact BD’s investments in innovation or its previously disclosed capital allocation strategy. BD is not updating its fiscal 2025 guidance as a result of the settlement. The company believes that settling with the SEC is the right course of action to fully resolve this matter and move forward. The BD Alaris System is safe and effective and is a critical part of health care in the United States. The system has been used for many years to safely deliver IV therapies to patients, including throughout the COVID-19 pandemic. The updated BD Alaris System received 510(k) clearance from the U.S. Food and Drug Administration in July 2023, and the company continues to update its Alaris fleet. BD has implemented a number of improvements to its operational and governance processes and related disclosure practices. BD is committed to operating with integrity and the highest ethical standards to produce high-quality, safe and effective products and serve as a trusted partner for its customers and their patients.”