“With today’s announcement, Stryker believes it has realized its goal of obtaining an appropriate resolution of this matter.”
Stryker Corporation has announced that it’s Biotech division has reached a settlement with the U.S. Attorney’s Office for the District of Massachusetts, agreeing to pay a non-tax deductible fine of $15 million for one misdemeanour. Thirteen other felony charges will be dismissed.
Stryker had disclosed in March 2009 that its Biotech division was the target of a federal grand jury investigation being conducted by the U.S. Attorney’s Office for the District of Massachusetts.
According to numerous news vehicles, including Massachussetts-based Metrowest Daily News(MDN); “The U.S. Attorney’s Office in Boston agreed this week to settle with a Hopkinton-based company charged with attempting to deceitfully promote medical devices.”
The charge sheet
In 2009, the U.S. Attorney’s Office charged Stryker Biotech with five counts of wire fraud and one count of conspiracy for promoting a product that was meant to stimulate bone growth, which had not been approved by the FDA.
The federal case against three former company employees was dropped, just two weeks into the trial, which started Jan. 9. Charges against former sales managers Jeffrey Whittaker and William Heppner were also dropped this week. “The government moved to dismiss the charges against two individuals (Heppner and Whittaker) on the grounds that such dismissal is in the best interests of justice,” said U.S. Attorney spokeswoman Brandy Donini-Melanson. Charges against another former sales manager, David Ard, have also been dropped. Ard and Whittaker were also charged with misbranding.
According to MDN, Stryker Biotech’s former president Mark Phillip is still on trial. He is also charged with making false statements to the FDA.
The company states that “With today’s announcement, Stryker believes it has realized its goal of obtaining an appropriate resolution of this matter.”
Source: Stryker, Metrowest Daily News