Medical device maker Zimmer Biomet Holdings (formerly Biomet) said last week in a securities filing that it’s still under investigation by the Department of Justice and Securities and Exchange Commission for possible violations of the Foreign Corrupt Practices Act regarding its operations in Brazil and Mexico.
As Compliance Week previously reported, Biomet entered into a three-year deferred prosecution agreement in 2012 with the Justice Department, and a parallel consent agreement with the SEC, 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 said in a Form 8-K last year. “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.”
Biomet’s DPA, which the Justice Department already extended for an additional year, has now been extended further; it won’t expire on March 26, as expected. The Justice Department, the SEC, and Biomet “have agreed to continue to evaluate and discuss these matters during the second quarter of 2016 and, therefore, the matter is ongoing and will not conclude in its entirety on March 26,” the company said in a Form 8-K on March 25.
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