NEW YORK (Reuters) – The government has entered into agreements with five medical device implant companies in a corporate fraud case, the federal prosecutor’s office in New Jersey said on Thursday.
The agreement was reached with Biomet, Johnson & Johnson unit DePuy Orthopaedics, Smith & Nephew, Stryker and Zimmer Holdings, the office of U.S. Attorney Christopher Christie said in a press advisory.
A news conference with Christie, as well as former U.S. Attorney General John Ashcroft, was scheduled for Thursday afternoon in Newark, New Jersey.
The government has been probing contracts that device makers maintain with surgeons.
Smith & Nephew, a British company, said in a statement that it was in advanced discussions with Christie’s office to agree to a settlement related to an investigation into the company’s consulting contracts with surgeons.
Smith & Nephew said it believes the resolution of the matter "will not be materially adverse to the company." It said it "further believes that the company’s procedures for the establishment and maintenance of consulting contracts with surgeons are compliant with the law."
A Stryker representative declined to comment.
The other three companies were not immediately available for comment.
Stryker shares were up 26 cents to $68.16 on the New York Stock Exchange. Zimmer was down 44 cents at $80.70, and J&J was up 17 cents at $65.56, also on the NYSE.
Smith & Nephew closed down 7 pence at 578.73 in London.
Biomet, which previously was publicly traded, was taken private in a deal that closed this week.
