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Zimmer Biomet (ZBH) paid an aggregate ~$30.5MM settlement and concluded agreements with the U.S. Department of Justice (DOJ) and U.S. Securities and Exchange Commission (SEC) regarding previously-disclosed U.S. Foreign Corrupt Practices Act (FCPA) matters involving Biomet, as well as matters relating to the former Deferred Prosecution Agreement (DPA) with DOJ and Consent to Final Judgment with SEC that Biomet entered into in 2012.
The $30.5MM settlement amount was previously recorded in ZBH financial statements and will not impact the company’s 2017 outlook. All conduct underlying the settlement occurred prior to Zimmer’s 2015 acquisition of Biomet.
In 2012, Biomet faced FCPA charges from the SEC and entered into a DPA, agreeing to retain an independent compliance monitor and pay a >$22MM settlement. The FCPA charges at that time related to claims that, from 2000 through a portion of 2008, Biomet and four subsidiaries paid bribes to public doctors employed by public hospitals and agencies in Argentina, Brazil and China to purchase medical devices.
While working with the independent monitor, Biomet learned of potential bribery violations regarding subsidiaries in Brazil and Mexico. These subsidiaries focused on the sale of dental implants and devices.
The present settlement amount of $30.5MM covers new settlement actions pertinent to Brazil and Mexico, as well as a portion of the deferred prosecution and certain disgorged profits for the 2012 allegations addressing Argentina, Brazil and China.
As part of the new settlement, ZBH:
- Entered into a new 3-year DPA with the DOJ
- Entered into a new settlement agreement with the SEC
- Agreed to oversight by an independent compliance monitor, focusing on legacy Biomet operations as integrated into ZBH
- Will pay the aforementioned $30.5MM in fines, penalties, disgorgement and interest to the DOJ and SEC
Sources: Zimmer Biomet, Inc.; justice.gov; ORTHOWORLD Inc.
Article updated 1/13/17 with additional historical information.
Zimmer Biomet (ZBH) paid an aggregate ~$30.5MM settlement and concluded agreements with the U.S. Department of Justice (DOJ) and U.S. Securities and Exchange Commission (SEC) regarding previously-disclosed U.S. Foreign Corrupt Practices Act (FCPA) matters involving Biomet, as well as matters relating to the former Deferred Prosecution Agreement...
Zimmer Biomet (ZBH) paid an aggregate ~$30.5MM settlement and concluded agreements with the U.S. Department of Justice (DOJ) and U.S. Securities and Exchange Commission (SEC) regarding previously-disclosed U.S. Foreign Corrupt Practices Act (FCPA) matters involving Biomet, as well as matters relating to the former Deferred Prosecution Agreement (DPA) with DOJ and Consent to Final Judgment with SEC that Biomet entered into in 2012.
The $30.5MM settlement amount was previously recorded in ZBH financial statements and will not impact the company’s 2017 outlook. All conduct underlying the settlement occurred prior to Zimmer’s 2015 acquisition of Biomet.
In 2012, Biomet faced FCPA charges from the SEC and entered into a DPA, agreeing to retain an independent compliance monitor and pay a >$22MM settlement. The FCPA charges at that time related to claims that, from 2000 through a portion of 2008, Biomet and four subsidiaries paid bribes to public doctors employed by public hospitals and agencies in Argentina, Brazil and China to purchase medical devices.
While working with the independent monitor, Biomet learned of potential bribery violations regarding subsidiaries in Brazil and Mexico. These subsidiaries focused on the sale of dental implants and devices.
The present settlement amount of $30.5MM covers new settlement actions pertinent to Brazil and Mexico, as well as a portion of the deferred prosecution and certain disgorged profits for the 2012 allegations addressing Argentina, Brazil and China.
As part of the new settlement, ZBH:
- Entered into a new 3-year DPA with the DOJ
- Entered into a new settlement agreement with the SEC
- Agreed to oversight by an independent compliance monitor, focusing on legacy Biomet operations as integrated into ZBH
- Will pay the aforementioned $30.5MM in fines, penalties, disgorgement and interest to the DOJ and SEC
Sources: Zimmer Biomet, Inc.; justice.gov; ORTHOWORLD Inc.
Article updated 1/13/17 with additional historical information.
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JV
Julie Vetalice is ORTHOWORLD's Editorial Assistant. She has covered the orthopedic industry for over 20 years, having joined the company in 1999.
