Zimmer Deferred Prosecution Agreement
We operate in more than 25 countries around the world and sell products in more than 100 countries. For more information, visit www.zimmerbiomet.com or follow Zimmer Biomet on Twitter in www.twitter.com/zimmerbiomet. Zimmer Biomet concluded a three-year-old DPA tin compound with a staining criminal information filed today in the District of Columbia, against the company for failing to implement a system of effective internal accounting controls. Under its agreement with the ministry, Zimmer agreed to pay Biomet a fine of $17.4 million and to maintain an independent compliance monitor for the company for three years. As part of the new settlement, the company entered into a three-year deferred prosecution agreement with the Department of Justice. JERDS Luxembourg Holding S.àr.l., the direct parent company of CV`s Biomet 3i Mexico SA and an indirect wholly-owned subsidiary of Biomet, Inc., has entered into an advocacy agreement with the DOJ; and Biomet, Inc. has entered into a new settlement agreement with the SEC. The company has also agreed to oversight through an independent compliance monitor who will focus on the company`s former Biomet businesses integrated with Zimmer Biomet. As a result of this decision, the Company will pay fines, penalties, withdrawals, and interest totaling approximately $30.5 million to the Department of Justice and the SEC. The amounts payable have already been recognized in the Company`s financial statements and will have no impact on the outlook for 2017.
Orthopedic appliance manufacturer Biomet Inc. said in an SEC filing that the DOJ extended its deferred enforcement agreement for the 2012 act, which was part of a 2012 FCPA enforcement action, by one year. Read more The finding means the company could be sued, although the Justice Department said the company had pledged to cooperate and was in “talks to resolve this case, which would suffer from the need for a lawsuit.” Zimmer Biomet Holdings Inc. (Zimmer Biomet), an Indiana-based manufacturer of orthopedic and dental implants, has agreed to pay a $17.4 million fine as part of a program to pay bribes to government officials in Mexico and for violations of the Internal Control Regulations of the Foreign Corrupt Practices Act (FCPA) affecting the company`s operations in Mexico and Brazil. Zimmer Biomet had violated a 2012 Deferred Enforcement Agreement (DPA) by which the ministry made available to an earlier investigation into FCPA violations by Biomet Inc., which became part of Zimmer Biomet in 2015. Biomet first faced FCPA charges from the SEC and, in March 2012, reached a de stay of proceedings agreement with the Department of Justice, agreeing to pay more than $22 million to settle the two cases. As part of the SEC settlement, Biomet has agreed to hire an independent compliance consultant to review its FCPA compliance program. After the settlement, when Biomet implemented the recommendations of the independent auditor, the company learned of possible corruption violations in Brazil and Mexico and informed the Monitor and the SEC in 2013. . . .