Clifford Chance
New FCPA Settlement Involving Medical Device Manufacturer
28 March 2012
On March 26, 2012, the US Department of Justice ("DOJ") and Securities Exchange Commission ("SEC") announced a settlement with Biomet, a medical device manufacturer, regarding allegations of improper payments made by its subsidiaries and distributors in China as well as Argentina and Brazil. Under a deferred prosecution agreement ("DPA"), Biomet will pay a criminal penalty of US $17.28 million and is required to implement "rigorous internal controls, cooperate fully with the [DOJ] and retain a compliance monitor for 18 months." In Biomet's settlement with the SEC, Biomet agreed to pay $5.4 million in disgorgement of
profits, including pre-judgment interest.
