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Johnson & Johnson Finds Improper Foreign Payments

The company's head of medical devices resigns.
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Johnson & Johnson (JNJ) - Get Johnson & Johnson (JNJ) Report disclosed late Monday that it believes certain foreign subsidiaries made improper payments related to selling medical devices in two small-market countries.

The actions were contrary to J&J's policies, and the payments may fall within the jurisdiction of the Foreign Corrupt Practices Act, the company said.

The company said that it voluntarily disclosed the information to the Department of Justice and the

Securities and Exchange Commission

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and that it will provide additional information to those agencies.

Michael J. Dormer, worldwide chairman of the company's Medical Devices & Diagnostics division, has retired from the company. In a letter to J&J, Dormer cited the internal review of these matters and noted he had "ultimate responsibility by virtue of my position" for the related foreign units.

Shares of J&J closed Monday off 14 cents to $65.46.