SEC Proposes $175M Becton Dickinson Fair Fund Distribution Plan
Summary
The SEC has issued a Notice of Proposed Plan of Distribution seeking public comment on the disbursement of a $175 million Fair Fund collected from Becton, Dickinson and Company following an enforcement action for misrepresenting regulatory risks associated with its Alaris infusion pump. The proposed plan would distribute the Net Available Fair Fund to investors who purchased BD common stock between February 5, 2019 and February 5, 2020 and suffered losses as calculated under the Plan of Allocation methodology. Comments on the Proposed Plan must be submitted within 30 days of the April 24, 2026 notice date.
“The Commission ordered the Respondent to pay a $175,000,000.00 civil money penalty to the Commission.”
Public companies that market regulated medical devices should review their SEC disclosure practices regarding regulatory risks, particularly where FDA clearance status affects product sales and financial performance. The BD enforcement action underscores the SEC's focus on requiring disclosure of material regulatory risks that could affect a company's core products. Firms with significant FDA-regulated product lines should assess whether their risk factor disclosures accurately reflect the regulatory status of key products and whether adequate reserves are maintained for remediation costs.
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What changed
The SEC Division of Enforcement has submitted a Proposed Plan of Distribution for comment regarding the $175 million Fair Fund established from civil penalties collected from Becton, Dickinson and Company. The underlying December 16, 2024 Order found that BD made repeated misrepresentations to investors regarding regulatory risks tied to its Alaris infusion pump, whose sales contributed approximately 10% of BD's profits. From 2016 through early 2020, BD failed to disclose that the device required new FDA clearance and that the FDA could prohibit sales until software flaws posing patient safety risks were corrected. BD also overstated income by failing to properly account for remediation costs.
Affected parties include investors who acquired BD common stock during the class period of February 5, 2019 through February 5, 2020 and experienced losses. The Proposed Plan provides for distribution of the Net Available Fair Fund (the $175 million penalty plus accrued interest, less taxes, fees, and expenses) to eligible investors pursuant to the Plan of Allocation methodology. Public companies subject to SEC disclosure requirements, particularly those marketing medical devices or making FDA-related risk disclosures, should monitor this distribution process as it establishes a framework for investor recovery in similar securities misrepresentation cases.
Archived snapshot
Apr 25, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
UNITED STATES OF AMERICA Before the SECURITIES AND EXCHANGE COMMISSION SECURITIES EXCHANGE ACT OF 1934 Release No. 105310 / April 24, 2026 ADMINISTRATIVE PROCEEDING File No. 3-22361 In the Matter of NOTICE OF PROPOSED PLAN OF DISTRIBUTION AND OPPORTUNITY FOR COMMENT Becton, Dickinson and Company, Respondent.
Notice is hereby given, pursuant to Rule 1103 of the United States Securities and Exchange Commission's (the "Commission") Rules on Fair Fund and Disgorgement Plans (the "Commission's Rules"), 17 C.F.R. § 201.1103, that the Division of Enforcement has submitted to the Commission a proposed plan of distribution (the "Proposed Plan") for the distribution of monies paid in the above-captioned matter. On December 16, 2024, the Commission issued an Order Instituting Cease-and-Desist Proceedings Pursuant to Section 8A of the Securities Act of 1933 and Section 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing a Cease-and-Desist Order (the "Order") against Becton, Dickinson and Company (the "Respondent"). In the Order, the 1 Commission found that Becton Dickinson ("BD") made repeated misrepresentations to investors regarding the risks it was taking in selling one of its most important products. From 2016 to early 2020, BD understood its Alaris infusion pump, whose sales contributed about 10% of BD's profits, required new regulatory clearance from the FDA to address historical changes to the device and to fix multiple software flaws that posed safety risks to patients. BD misrepresented these risks and failed to disclose the risk that the FDA would prohibit sales of Alaris until the company obtained new clearance and fixed its software. BD also overstated its income by failing to properly account for the costs of fixing the device. The Commission ordered the Respondent to pay a $175,000,000.00 civil money penalty to the Commission. The Commission also created a Fair Fund, pursuant to Section 308(a) of the
: : Securities Act Rel. No. 11344 (Dec. 16, 2024). 1: : : : :
Sarbanes-Oxley Act of 2002, so the penalty collected can be distributed to harmed investors (the "Fair Fund"). The Fair Fund includes the $175,000,000.00 collected from the Respondent. The assets of the Fair Fund are subject to the continuing jurisdiction and control of the Commission. The Fair Fund has been deposited in a Commission-designated account at the U.S. Department of the Treasury, and any interest accrued will be added to the Fair Fund.
OPPORTUNITY FOR COMMENT
Pursuant to this Notice, all interested persons are advised that they may obtain a copy of the Plan from the Commission's public website at https://www.sec.gov/litigation/fairfundlist.htm. Interested persons may also obtain a written copy of the Proposed Plan by submitting a written request to Michael K. Catoe, United States Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549-5631. All persons who desire to comment on the Proposed Plan may submit their comments in writing, no later than thirty (30) days from the date of this Notice:
- to the Office of the Secretary, United States Securities and Exchange
Commission, 100 F Street, NE, Washington, DC 20549-1090;
by using the Commission's Internet comment form
(https://www.sec.gov/litigation/admin.shtml); orby sending an e-mail to rule-comments@sec.gov.
Comments submitted by email or via the Commission's website should include "Administrative Proceeding File No. 3-22361" in the subject line. Comments received will be publicly available. Persons should submit only information they wish to make publicly available.
THE PROPOSED PLAN
The Net Available Fair Fund is comprised of the $175,000,000.00 in civil money 2 penalties collected from the Respondent, plus any interest and income earned thereon, less taxes, fees, and expenses. The Proposed Plan provides for the distribution of the Net Available Fair Fund to investors who purchased or acquired Becton, Dickinson and Company common stock
All capitalized terms used herein but not defined shall have the same meanings ascribed to them in the Proposed 2 Plan.
(the "Security") on February 5, 2019 through February 5, 2020 and suffered a loss as calculated using the methodology detailed in the Plan of Allocation. For the Commission, by the Division of Enforcement, pursuant to delegated authority. 3 Vanessa A. Countryman Secretary
17 C.F.R. § 200.30-4(a)(21)(iii). 3
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