SEC queries orthopedic device makers
This article was originally published in The Gray Sheet
Stryker, Zimmer, Biomet, Smith & Nephew and Medtronic confirm the Securities and Exchange Commission is investigating possible violations of the Foreign Corrupt Practices Act in connection with sales to certain countries overseas. The Act prohibits bribery of foreign officials by American companies. Stryker, Zimmer, Biomet and S&N (along with Johnson & Johnson/DePuy) recently settled Department of Justice charges related to allegations of kickbacks to surgeons ("1The Gray Sheet" Oct. 1, 2007, p. 3). J&J/DePuy says it has not received a letter from SEC, however. In February, the firm voluntarily disclosed to SEC and DoJ potential violations of the Foreign Corrupt Practices Act, leading to the resignation of Michael Dormer, worldwide chairman of the firm's device and diagnostics unit ("2The Gray Sheet" Feb. 19, 2007, p. 16)
You may also be interested in...
Federal prosecutors have begun targeting medical device companies in Foreign Corrupt Practices Act investigations
Four major hip and knee implant manufacturers will pay the government a total of $311 million to settle anti-kickback claims resulting from a two-year Department of Justice and HHS investigation into the companies' financial relationships with surgeons, the New Jersey U.S. Attorney's office announced Sept. 27
Worldwide chairman of Johnson & Johnson's medical devices and diagnostics business Michael Dormer abruptly retired Feb. 12 following J&J's disclosure that foreign subsidiaries may have made improper payments in the course of marketing activities