Department of Justice settles with five device manufacturers.

U.S. Attorney Christopher J. Christie, of the U.S. Department of Justice (DOJ), announced civil settlements were reached on Thursday, Sept. 27, 2007, between the DOJ and five medical device manufacturers. Zimmer Inc., DePuy Orthopaedics, Inc., Smith & Nephew Inc., and Biomet Inc. accepted Deferred Prosecution Agreements  (DPAs), paying a total of $311 million to settle government claims that they paid financial inducements to surgeons to use their products. The fifth company, Stryker Orthopedics, Inc., voluntarily complied and therefore did not enter into any civil settlement with the government. All the companies, however, have agreed to implement reforms and be federally monitored for 18 months. The DOJ says complaints will be dismissed at the conclusion of the DPAs if the companies comply with their terms. The five companies involved account for nearly 95 percent of the hip and knee surgical implant market.