Following a five-year investigation into the overseas marketing and sales practices of medical device makers, the DOJ and SEC won’t bring any FCPA enforcement against one of the targeted companies, Zimmer Holdings Inc.
Zimmer said it received letters of declination from the SEC in December last year and from the DOJ on February 1st.
In 2011, the SEC subpoenaed Zimmer, seeking documents and other records about sales activities in ‘substantially all’ countries in the Asia Pacific region where the company operates.
Indiana-based Zimmer lists business locations in China, India, Hong Kong, Taiwan, Thailand, Australia, and New Zealand.Other medical device makers that have recently resolved FCPA enforcement actions include Johnson & Johnson, Bioment, and Smith & Nephew.
Zimmer said, ‘While we are pleased with the government’s declination decision in this matter, we are committed to continuing to enhance our global anti-corruption compliance program.’
* * *The full FCPA disclosure from Zimmer Holdings, Inc.’s Form 10-K filed with the SEC on February 27 said:
In September 2007, the Staff of the U.S. Securities and Exchange Commission (SEC) informed us that it was conducting an investigation regarding potential violations of the Foreign Corrupt Practices Act (FCPA) in the sale of medical devices in a number of foreign countries by companies in the medical device industry. In November 2007, we received a letter from the U.S. Department of Justice (DOJ) requesting that any information provided to the SEC also be provided to the DOJ on a voluntary basis. In the first quarter of 2011, we received a subpoena from the SEC seeking documents and other records pertaining to our business activities in substantially all countries in the Asia Pacific region where we operate. We produced documents responsive to the subpoena and reported to the government concerning the results of our own reviews regarding FCPA compliance. During a meeting in December 2012, representatives from the agencies informed us that the SEC and the DOJ planned to close their investigation without pursuing any enforcement action against us. The DOJ and SEC formally notified us through letters of declination dated December 19, 2012 and February 1, 2013, respectively, that the agencies have closed their inquiries into this matter. While we are pleased with the government’s declination decision in this matter, we are committed to continuing to enhance our global anti-corruption compliance program.
Can some one help me with this one.
A surgeon owned company with his brother at the helm.
He the doctor is employed at a government owned hospital,as a consultant
But the compliant issue is. He the surgeon is the owner of a orthopedic supply company
And he is selling himself, I am almost certain that if an audit was conducted,
A TKA would cost much more at that institution than the sister institution down south.
But in the developing countries apparently the US law
Is a tooth less pitbull.
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