The company voluntarily reported to the United States government concerning its former Mexican orthopedic distribution entity in June 2010. As a result of recent discussions with the Department of Justice and the U.S. Securities Exchange Commission, the company will take charge of approximately $4.5 million in the fourth quarter 2011 to establish as an additional accrual in anticipation of the proposed criminal and civil resolution of the matter.
In an unrelated matter, the company agreed to pay $32 million to resolve an investigation related to a subsidiary of the company, Blackstone Medical. The company will also resolve remaining escrow claims with the former equity holders of Blackstone.
Finally, the company is in the process of finalizing a definitive agreement with the U.S. Attorney’s Office, DOJ and OIG to resolve a criminal and civil investigation into its bone growth stimulation business, including a pending lawsuit in Massachusetts. The company has agreed to pay $43 million to the U.S. government, which has been previously disclosed.
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