Orthopedic device maker Biomet Inc. said Thursday it was subpoenaed by the SEC for an investigation of possible violations of the terms of an FCPA settlement the company reached two years ago.
Biomet said in a securities filing that the SEC issued a subpoena requiring production of documents relating to “certain alleged improprieties” in the company’s Brazilian and Mexican operations. Biomet said it learned of the possible violations in October 2013 and disclosed them to the SEC and DOJ in April this year.
Biomet is in the process of being acquired by Zimmer Holdings.
In March 2012, Biomet agreed to pay $22.7 million to settle FCPA-related offenses. The Warsaw, Indiana company paid a criminal fine of $17.3 million to the DOJ and $5.5 million in disgorgement and pre-judgment interest to the SEC.
In Thursday’s SEC filing, Biomet said it has fired or disciplined employees involved in the possible violations in Brazil and Mexico.
It said it had disclosed the compliance issues to the independent monitor it retained as part of the 2012 settlement, and made the disclosure to the SEC and the DOJ, according to the terms of its deferred prosecution agreement.
Biomet said the DOJ has “sole discretion” to decide whether the company violated or breached the deferred prosecution agreement. The DOJ can extend or revoke the agreement, or prosecute the company or the individuals allegedly involved in any violations, Biomet said.
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Julie DiMauro is the executive editor of FCPA Blog and can be reached here.
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