LEWISVILLE, Texas--(BUSINESS WIRE)--
Orthofix International N.V., (NASDAQ:OFIX) (the Company) announced today
that it has resolved all matters related to the investigation of its
bone growth stimulation business. Consistent with the agreement in
principle that the Company previously announced in May 2011, the Company
will pay approximately $43 million to resolve all civil and criminal
matters, which included a plea to obstruction of a June 2008 federal
audit. These charges were previously recorded in the first quarter of
2011. As part of the resolution, the Court imposed a five-year term of
probation, during which the Company must continue to comply with the
terms of its previously-executed Corporate Integrity Agreement. This
final settlement also includes the resolution of a related qui tam
complaint filed against the Company, which remains pending against
several of its competitors.
President and Chief Executive Officer Robert Vaters commented, "I am
very pleased with the final resolution of these matters. Over the last
few years, we have made significant investments in compliance and have
made many organizational changes to enhance the ethical culture of the
Company. Through this transformation we have established an ethical tone
at the Company where integrity and commitment to compliance are
paramount. Looking forward, I am eager to maintain our leadership
position with our Regenerative Stimulation product offering based on
providing superior patient outcomes and driving value in the healthcare
system."
The resolution of these matters represents the Company's third major
government investigation settlement this year, following the final
resolution of the investigation concerning the Company's Blackstone
Medical Inc. subsidiary and the resolution of the self-reported Foreign
Corrupt Practices Act matter announced earlier this year. "I would like
to thank our Senior Vice President, General Counsel, Corporate
Secretary, Jeffrey Schumm, for his tireless efforts in navigating the
Company to the conclusion of each of these difficult investigations,"
said Mr. Vaters. "We emerge from these resolutions as a Company deeply
committed to the highest levels of integrity and ethics which, along
with our unique value proposition for bone repair and regeneration, we
believe will position us for continued long term growth.
Forward-Looking Statements:
This communication contains certain forward-looking statements under the
Private Securities Litigation Reform Act of 1995. These forward-looking
statements, which may include, but are not limited to, statements
concerning the projections, financial condition, results of operations
and businesses of Orthofix and its subsidiaries and are based on
management's current expectations and estimates and involve risks and
uncertainties that could cause actual results or outcomes to differ
materially from those contemplated by the forward-looking statements.
The forward-looking statements in this release do not constitute
guarantees or promises of future performance. Existing and prospective
investors are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof. The
Company undertakes no obligation to update or revise the information
contained in this press release (which contains information current as
of the date hereof, whether as a result of new information, future
events or circumstances, or otherwise.
About Orthofix:
Orthofix International N.V. is a diversified, global medical device
company focused on developing and delivering innovative repair and
regenerative solutions to the spine and orthopedic markets. Orthofix's
products are widely distributed around the world to orthopedic surgeons
and patients via Orthofix's sales representatives and its subsidiaries,
and via collaborations with other leading orthopedic product companies.
In addition, Orthofix is collaborating on R&D activities with leading
research and clinical organizations such as the Musculoskeletal
Transplant Foundation, the Orthopedic Research and Education Foundation,
and Texas Scottish Rite Hospital for Children. For more information
about Orthofix, please visit www.orthofix.com.
Orthofix
Mark Quick, 214-937-2924
Director of Investor
Relations and Business Development
[email protected]
Source: Orthofix International N.V.
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