The Department of Justice has decided to extend for an additional year a deferred prosecution agreement reached in 2012 with Biomet after the medical device maker self-reported additional potential violations of the Foreign Corrupt Practices Act, the company said last week in a Form 8-K.
In 2012, Biomet entered into a DPA with the Justice Department, and a parallel consent agreement with the Securities and Exchange Commission for possible violations of the FCPA. Then, in October 2013, Biomet became aware of certain alleged improprieties regarding its operations in Brazil and Mexico, including alleged improprieties that predated the entry of the DPA.
“Biomet retained counsel and other experts to investigate both matters,” the company stated. “Based on the results of the ongoing investigations, Biomet has terminated, suspended, or otherwise disciplined certain of the employees and executives involved in these matters and has taken certain other remedial measures.”
Additionally, Biomet said it disclosed these matters to the independent compliance monitor and the Justice Department and SEC. As Compliance Week previously reported, the SEC issued a subpoena to Biomet last year requiring that it produce certain documents relating to such matters, which remain under investigation by the Justice Department.
The three-year DPA, which would have expired March 26, 2015, will now expire on March 26, 2016. The Justice Department further extended for an additional year the independent compliance monitor that Biomet was saddled with under the terms of the DPA.
Biomet said it continues to cooperate with the SEC and Justice Department and expects that these discussions will continue.