Stryker Agrees To Pay $80 Mln To Settle OtisMed Case

(RTTNews) - Stryker Corp. (SYK) announced that it has entered into a settlement with the U.S. Department of Justice or DOJ in connection with the DOJ's civil and criminal investigations into the sales and marketing of the OtisKnee prior to Stryker's acquisition of OtisMed in November 2009. Stryker and OtisMed will pay $79,560,400 plus interest.

In resolving the OtisMed matter, the DOJ acknowledged that OtisMed's criminal conduct "occurred prior to Stryker's acquisition of OtisMed and without Stryker's prior knowledge or acquiescence."

OtisMed Corp. and its former chief executive officer admitted to intentionally distributing knee replacement surgery cutting guides after their application for marketing clearance had been rejected by the Food and Drug Administration (FDA), and the corporation agreed to pay more than $80 million to resolve its related criminal and civil liability, the U.S. Justice Department said.