Justice Department Subpoenas Stryker Over Foreign Practices

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Written by Rob Kurtz

Thursday, 06 March 2008

Device maker Stryker Corp. has announced that it received a subpoena from the criminal division of the Department of Justice requesting documentation concerning possible violations of the Foreign Corrupt Practices Act, which prohibits bribing officials to obtain or retain business.

The DOJ?s request was made in connection with last year?s Securities and Exchange Commission's inquiry into the foreign sales practices of Stryker, and other devicemakers including Zimmer, Smith & Nephew, and Medtronic, according to October reports.

Stryker included the announcement of the subpoena as part of its annual company report, filed with the SEC Feb. 28. In the report Stryker revealed that ?... in 2008, the Company received a subpoena from the (DOJ), Criminal Division, requesting certain documents for the period January 1, 2000 through the present in connection with the (SEC) inquiry.?

This latest inquiry into the practices of some of the country?s largest device makers began shortly after several device makers agreed to pay more than $300 million to settle charges that they had paid U.S. doctors help increase device sales. Stryker avoided monetary penalties because it cooperated with DOJ investigators early in the investigation.

Stryker indicated in its annual report that it is cooperating with the DOJ and SEC regarding their inquiries.