Former Bio-Rad GC Sues Company for Retaliation

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By Yin Wilczek

May 29 — The former general counsel of Bio-Rad Laboratories Inc. has sued the company alleging that it fired him for reporting bribery concerns related to China.

In a May 27 complaint filed in the U.S. District Court for the Northern District of California, Sanford Wadler says that after he learned Bio-Rad was involved in extensive Foreign Corrupt Practices Act violations in Russia, Thailand and Vietnam, he investigated—and uncovered—similar activity in China.

Wadler claims that after “repeated stonewalling” from the company's chief executive officer and chief financial officer regarding his concerns, he brought his suspicions to Bio-Rad's audit committee in February 2013. According to the complaint, he was “shocked” when the outside counsel engaged by the company said the following month that it failed to uncover wrongdoing in China during an internal investigation.

Wadler alleges that the company fired him in June 2013, shortly before it was scheduled to present its internal investigation findings to the Securities and Exchange Commission and the Justice Department, because “he refused to be complicit in its wrongdoing.”

A Bio-Rad representative did not immediately respond to a request for comment.

In November, Bio-Rad entered into a non-prosecution agreement to pay $55 million to the SEC and the DOJ to resolve allegations that it failed to prevent its subsidiaries from making improper payments to officials in Russia, Thailand and Vietnam, as well as falsifying records to hide the payments.

At the time the settlement was announced, SEC Enforcement Director Andrew Ceresney said it reflected credit for Bio-Rad's cooperation in the commission's investigation.

To contact the reporter on this story: Yin Wilczek in Washington at

To contact the editor responsible for this story: Ryan Tuck at

The complaint is available at et_al_Docket_No_ 315cv02356_ND_Ca.

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