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Biomet Sets Aside Reserves for DPA Breaches
On August 8, 2016, medical device manufacturer Biomet announced in an SEC filing that it is “probable” that the company will incur additional liabilities in connection with the company’s 2012 deferred prosecution agreement (DPA) related to FCPA violations in Mexico and Brazil. The company stated that it had set aside funds for this purpose, but did not specify the amount. Biomet’s SEC filing stated that the company “expects to continue discussions with the SEC and DOJ but the terms of a potential resolution were not certain.”
Two months ago, DOJ stated in a court filing that Biomet had breached the DPA by failing to implement and maintain a compliance program. See previous FCPA Scorecard coverage of that filing here.
DOJ Determines that Biomet Breached FCPA Deferred Prosecution Agreement
On June 6, the DOJ filed a status report with the U.S. District Court for the District of Columbia stating that medical device manufacturer Biomet had violated its 2012 deferred prosecution agreement (DPA) related to FCPA charges. Specifically, the DOJ stated that it notified Biomet on April 15, 2016 that "the government had determined that Biomet had breached the DPA based on the conduct in Mexico and Brazil and based on Biomet's failure to implement and maintain a compliance program as required by the DPA." Biomet had settled FCPA charges with the DOJ and SEC in 2012 related to the company's conduct in Argentina, Brazil, and China. As previously reported in the FCPA Scorecard, Biomet's DPA had been extended twice since 2012: once in March 2015 because the company had discovered additional potential FCPA violations in Brazil and Mexico, and again in March 2016. According to the DOJ, Biomet and the DOJ are in discussions to resolve the matter without a trial.
Biomet Deferred Prosecution Agreement Extended for a Second Time
On March 25, medical device manufacturer Biomet announced that the deferred prosecution agreement it entered into with the DOJ to settle FCPA charges in 2012 would be extended a second time. The company reported that the DOJ and SECs investigation into alleged misconduct in Brazil and Mexico, and into the companys compliance program, was still ongoing. Biomet settled FCPA charges with the DOJ and SEC in 2012 related to the companys conduct in Argentina, Brazil and China. As previously reported, Biomet disclosed in March 2015 that the deferred prosecution agreement it had agreed to as part of the settlement would be extended for one year because the company had discovered additional potential FCPA violations in Brazil and Mexico.
Biomet Deferred Prosecution Agreement Extended for Additional Year
On March 13, medical device company Biomet Inc. disclosed in an 8-K that the DOJ had extended by one year the Deferred Prosecution Agreement ("DPA") that was scheduled to expire this month. The DPA related to Biomet's 2012 settlement with the DOJ and SEC of FCPA allegations related to conduct in Argentina, China, and Brazil (see prior FCPA Scorecard coverage). According to the 8-K, 18 months after the DPA was originally entered, Biomet discovered additional potential FCPA violations in Brazil and Mexico and self-disclosed those issues to the DOJ and SEC. In addition to the DPA, Biomet's corporate monitor was also extended for a year. Biomet is now the second company in the last year to have a DPA extended by the DOJ due to new potential violations (the first being the DPA with Standard Chartered Bank regarding economic sanctions violations).
Biomet settles FCPA case with DOJ and SEC
Device manufacturer Biomet settles Argentina, China, and Brazil-related FCPA case with DOJ and SEC for a combined $22.8 million.