Zimmer Biomet Says Justice Department, SEC Still Looking Into Biomet Issues
Matter relates to alleged past misconduct in Brazil and Mexico by Biomet, which Zimmer bought in 2015
By
Josh Beckerman
March 25, 2016 6:52 p.m. ET
0 COMMENTS
Medical device maker Zimmer Biomet Holdings Inc.ZBH1.50% said the U.S. Justice Department and the Securities and Exchange Commission are still evaluating alleged past misconduct in Brazil and Mexico by Biomet Inc.
Orthopedic manufacturer Biomet, sold to Zimmer last year for about $14 billion, agreed in March 2012 to pay $22.7 million and retain a compliance monitor to settle allegations it violated the Foreign Corrupt Practices Act.
A three-year deferred prosecution agreement was set to expire last March, then was extended for a year, to March 26, 2016.
Zimmer Biomet said Friday that “the matter is ongoing and will not conclude in its entirety on March 26, 2016.” Biomet, the Justice Department and the SEC have agreed to discuss the alleged misconduct and any compliance-related issues during the second quarter.
In January, Zimmer Biomet said its fourth-quarter sales surged as all of its units experienced double-digit growth, though a larger increase in expenses hurt its profit.
Zimmer Biomet is one of the world’s largest makers of artificial knees and hips and other implants.
Matter relates to alleged past misconduct in Brazil and Mexico by Biomet, which Zimmer bought in 2015
By
Josh Beckerman
March 25, 2016 6:52 p.m. ET
0 COMMENTS
Medical device maker Zimmer Biomet Holdings Inc.ZBH1.50% said the U.S. Justice Department and the Securities and Exchange Commission are still evaluating alleged past misconduct in Brazil and Mexico by Biomet Inc.
Orthopedic manufacturer Biomet, sold to Zimmer last year for about $14 billion, agreed in March 2012 to pay $22.7 million and retain a compliance monitor to settle allegations it violated the Foreign Corrupt Practices Act.
A three-year deferred prosecution agreement was set to expire last March, then was extended for a year, to March 26, 2016.
Zimmer Biomet said Friday that “the matter is ongoing and will not conclude in its entirety on March 26, 2016.” Biomet, the Justice Department and the SEC have agreed to discuss the alleged misconduct and any compliance-related issues during the second quarter.
In January, Zimmer Biomet said its fourth-quarter sales surged as all of its units experienced double-digit growth, though a larger increase in expenses hurt its profit.
Zimmer Biomet is one of the world’s largest makers of artificial knees and hips and other implants.