Mexico’s Health Care Agency Alleges Zimmer Fraud
Mexico’s health care agency is suing Zimmer Biomet for a refund on purchases it made from the company during a long-running bribery scheme. The agency claims the bribery, which was admitted in a 2017 settlement with the US government, nullified its contracts with the device maker.
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Zimmer Biomet reported Q4 results that reflected solid progress in the company’s turnaround efforts, with knees leading the charge. But the company is making slower-than-expected progress resolving FDA warning letter issues and faces a new bribery lawsuit in Mexico.
The orthopedic device company is set to pay $17.4m to the US Department of Justice and an additional $13m to the Securities and Exchange Commission to resolve allegations that Biomet didn’t stop corrupt acts in Brazil and Mexico even after a 2012 deferred prosecution agreement.
Zimmer Biomet is now the second-largest orthopedic device maker behind Johnson & Johnson now that the merger between the two firms is complete. The companies divested some U.S. knee, elbow and bone cement assets in conjunction with finalized the deal after having sold of some European assets earlier in the year.