Zimmer Biomet announces DOJ, SEC resolution over Biomet FCPA matters
Zimmer Biomet announced it has concluded agreements with the Department of Justice and the Securities and Exchange Commission to resolve the previously disclosed U.S. Foreign Corrupt Practices Act matters involving Biomet, as well as in relation to the former deferred prosecution agreement and consent to final judgment that Biomet entered into with DOJ and SEC on March 26, 2012. "All of the Biomet conduct underlying today's settlement announcement has been reported in the past and occurred years prior to Zimmer's acquisition of Biomet in June 2015," the company noted. As part of the new settlement, the company has entered into a deferred prosecution agreement with the DOJ with a term of three years; JERDS Luxembourg, the parent company of Biomet 3i Mexico and an indirect, wholly-owned subsidiary of Biomet, has entered into a plea agreement with the DOJ; and Biomet has entered into a new settlement agreement with the SEC. The company has also agreed to oversight by an independent compliance monitor, which will focus on the company's legacy Biomet operations, as integrated into Zimmer Biomet. As a result of the resolution, the company will pay fines, penalties, disgorgement and interest to the DOJ and SEC in an aggregate amount of approximately $30.5M. The amounts to be paid were previously recorded in the company's financial statements and will not impact its 2017 outlook. "We look forward to continuing to integrate the legacy Biomet business operations into our robust corporate compliance program," the company remarked.