Stryker will pay a little over $79 million to end civil and criminal investigations conducted by the U.S. Department of Justice into the sales and marketing of the OtisKnee before Stryker acquired its parent company, OtisMed.
According to the Bloomberg BNA Health Care Daily Report, OtisMed pleaded guilty to federal charges of intentionally distributing its OtisKnee device despite the fact the company's application for marketing clearance had been rejected by the U.S. Food and Drug Administration.
However, the DOJ acknowledged that OtisMed's criminal conduct "occurred prior to Stryker's acquisition of OtisMed and without Stryker's prior knowledge or acquiescence."
Stryker and OtisMed will pay a total of $79,560,400 plus interest.
Earlier this month, Stryker's dividend increased 13 percent. Stryker is now able to discuss a potential acquisition with Smith & Nephew, however no announcement has been made yet.
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