28th Sep 2007 07:00
Smith & Nephew Plc27 September 2007 Unit of Smith & Nephew one of five companies to settle with U. S. Attorney inNew Jersey 27 September 2007 Smith & Nephew plc (LSE: SN, NYSE: SNN), the global medical technology business,announced today that its Orthopaedic Reconstruction business unit, an operatingdivision of its U.S. subsidiary, Smith & Nephew, Inc., has reached a civilsettlement agreement with the U.S. Attorney for the District of New Jersey(USDOJ) following an industry wide investigation. The orthopaedicreconstruction unit of Smith & Nephew and the four other major U.S. orthopaediccompanies received subpoenas from the USDOJ in March 2005 requesting copies ofall consulting contracts with surgeons. Since that time the USDOJ has conductedan industry wide investigation into the vital relationships between surgeons andthe orthopaedic implant industry. Smith & Nephew has co-operated fully with the USDOJ throughout the investigationand has now reached an agreement with the USDOJ to pay $28,929,840 in civilrestitution. Smith & Nephew and the four other companies have also entered intosimilar agreements which will be in force for 18 months. As part of eachagreement a separate external monitor will be appointed to oversee contractsbetween each company and its consulting surgeons. The agreement between Smith &Nephew and the USDOJ is entirely voluntary and Smith & Nephew has neitheradmitted guilt nor agreed to allegations as part of this settlement. David J. Illingworth, Chief Executive of Smith & Nephew plc, commenting on thesettlement said "We have worked closely with the U. S. Department of Justice torefine compliance procedures which apply across the industry and enable the bestoutcome for the patient, the surgeon, the hospital, private payers and Medicare. We are satisfied that the industry wide compliance program made uniform bythis settlement will ensure continued, appropriate use of consultants, and welook forward to working with the monitor for the next 18 months. We continue towork towards our goal of helping patients regain their lives." Enquiries Investors Liz Hewitt Tel: +44 (0) 20 7401 7646Smith & NephewGroup Director Corporate Affairs MediaJon Coles Tel: +44 (0) 20 7404 5959Brunswick - London David Shapiro Tel: +1 (202) 393 7337Brunswick - Washington About Smith & Nephew Smith & Nephew is a global medical technology business, specialising inOrthopaedic Reconstruction, Orthopaedic Trauma and Clinical Therapies, Endoscopyand Advanced Wound Management products. Smith & Nephew is a global leader inarthroscopy and advanced wound management and is one of the leading globalorthopaedics companies. Smith & Nephew is dedicated to helping improve people's lives. The Companyprides itself on the strength of its relationships with its surgeons andprofessional healthcare customers, with whom its name is synonymous with highstandards of performance, innovation and trust. The Company has 9,600 employeesand operates in 31 countries around the world generating annual salesapproaching $2.8 billion. Forward-Looking Statements This press release contains certain "forward-looking statements" within themeaning of the US Private Securities Litigation Reform Act of 1995. Inparticular, statements regarding expected revenue growth and trading marginsdiscussed under "Outlook" are forward-looking statements as are discussions ofour product pipeline. These statements, as well as the phrases "aim", "plan","intend", "anticipate", "well-placed", "believe", "estimate", "expect","target", "consider" and similar expressions, are generally intended to identifyforward-looking statements. Such forward-looking statements involve known andunknown risks, uncertainties and other important factors (including, but notlimited to, the outcome of litigation, claims and regulatory approvals) thatcould cause the actual results, performance or achievements of Smith & Nephew,or industry results, to differ materially from any future results, performanceor achievements expressed or implied by such forward-looking statements. Pleaserefer to the documents that Smith & Nephew has filed with the U.S. Securitiesand Exchange Commission under the U.S. Securities Exchange Act of 1934, asamended, including Smith & Nephew's most recent annual report on Form 20F, for adiscussion of certain of these factors. All forward-looking statements in this press release are based on informationavailable to Smith & Nephew as of the date hereof. All written or oralforward-looking statements attributable to Smith & Nephew or any person actingon behalf of Smith & Nephew are expressly qualified in their entirety by theforegoing. Smith & Nephew does not undertake any obligation to update or reviseany forward-looking statement contained herein to reflect any change in Smith &Nephew's expectation with regard thereto or any change in events, conditions orcircumstances on which any such statement is based. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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