Medical device maker Biomet Inc breached a deferred prosecution agreement it reached in 2012 to resolve a foreign corruption investigation, U.S. prosecutors said in a court filing.
In a status report filed in federal court in Washington, D.C. on June 6, the U.S. Department of Justice said Biomet breached the agreement through activity in Brazil and Mexico that it disclosed in 2014, and by failing maintain a corporate compliance program.
The finding means the company could face criminal prosecution, though the Justice Department said the company had pledged to cooperate and was in “discussions to resolve this matter which would obviate the need for a trial.”
Indiana-based Biomet, now called Zimmer Biomet Holdings Inc after being acquired by Zimmer Holdings last year, did not immediately respond to a request for comment.
Biomet entered into the deferred prosecution agreement to settle allegations that it paid bribes to state-employed healthcare providers in Argentina, Brazil and China in order to secure business with hospitals, the Justice Department said in 2012.
