Zimmer Biomet resolved an issue with the U.S. Foreign Corrupt Policies Act that has been ongoing for several years.
Biomet was accused of paying bribes to healthcare providers in South America and China for business within their hospitals, violating the U.S. Foreign Corrupt Practices Act before Zimmer acquired the company. The company already agreed on a $17.3 million penalty payment and $5.4 million civil settlement, paid to the U.S. Securities and Exchange Commission, related to the case, according to Reuters.
Biomet initially reached a deferred prosecution agreement in 2012, but then breached the agreement in 2014. In the new settlement, Zimmer Biomet will pay $30.5 million and enter into a deferred prosecution agreement with the Department of Justice for three years.
As part of the new agreement, an independent compliance monitor will oversee the company focusing on the legacy Biomet operations that have been integrated into Zimmer Biomet.
Zimmer Biomet doesn't expect the payment to affect its 2017 outlook, as the amounts paid were previously recorded in the company's financial statements.