Zimmer Biomet labeling former employee a 'compliance risk' isn't defamation: Court

Written by Laura Dyrda | October 11, 2019 | Print  |

A Chicago court ruled that Zimmer Biomet identifying an employee as a compliance risk is not defamation, according to The Wall Street Journal.


Three things to know:

1. A former employee sued Zimmer Biomet in 2016 after the company designated him as a compliance risk related to antibribery laws.

2. Alejandro Yeatts had been employed by a Biomet subsidiary in Argentina, which was under scrutiny for potential foreign bribery. Biomet eventually settled the allegations with the U.S. in 2012, but Mr. Yeatts was named on the compliance risk list and found he could not do business with other Biomet employees and agents as a result.

3. The court found that even if Mr. Yeatts wasn't involved in criminal activity, Biomet's concern was justified.

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