Attached files
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8-K - FORM 8-K - WRIGHT MEDICAL GROUP INC | g24721e8vk.htm |
EX-10.2 - EX-10.2 - WRIGHT MEDICAL GROUP INC | g24721exv10w2.htm |
EX-10.3 - EX-10.3 - WRIGHT MEDICAL GROUP INC | g24721exv10w3.htm |
EX-10.1 - EX-10.1 - WRIGHT MEDICAL GROUP INC | g24721exv10w1.htm |
Exhibit 99
FOR IMMEDIATE RELEASE
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Contact: Lance A. Berry |
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(901) 867-4607 |
Wright Medical Announces Resolution of Government Investigation
Arlington,
TENNSeptember 30, 2010Wright Medical Group, Inc. (NASDAQ: WMGI),
announced today that its wholly-owned subsidiary, Wright Medical Technology, Inc. (Company),
has entered into a Deferred Prosecution Agreement (DPA) with the United States Attorneys Office
for the District of New Jersey (USAO) and a civil Settlement Agreement (CSA) with the United
States. These agreements resolve the USAOs investigation into the Companys consulting
arrangements with orthopaedic surgeons relating to its hip and knee products in the United States.
Under the DPA, the USAO agrees not to prosecute the Company in connection with the matter if the
Company satisfies its obligations during the 12 month term of the DPA. Pursuant to the CSA, the
Company will settle civil and administrative claims relating to the matter for a payment of
$7,929,900, without any admission by the Company. In conjunction with the CSA, the Company has
also entered into a five (5) year Corporate Integrity Agreement (CIA) with the Office of the
Inspector General of the United States Department of Health and Human Services.
Pursuant to the DPA, an independent monitor will review and evaluate the Companys compliance with
its obligations under the DPA.
Together, the agreements announced today resolve the investigation commenced by the USAO in
December of 2007. The USAO specifically acknowledges in the DPA that it does not allege that the
Companys conduct adversely affected patient health or patient care.
The Company previously accrued approximately $8 million for an anticipated settlement of this
investigation, and therefore, these agreements are not anticipated to materially impact the
Companys results of operations for the third quarter of 2010.
Wright Medicals President and Chief Executive Officer, Gary D. Henley, stated We are pleased to
announce these agreements and look forward to working with the independent monitor as we continue
our commitment to the highest standards of ethical and legal conduct. This commitment applies to
all our dealings with our customers, vendors and business partners, as well as with our surgeon
consultants who are an important source of innovation in medical technology and integral to the
training of their peers. We believe this resolution is in the best interest of our shareholders and
that the terms of the resolution reflect our cooperation with the government throughout the
investigation.
A copy of the DPA has been posted to the Companys website.
Wright Medical Group, Inc. is a global orthopaedic medical device company specializing in the
design, manufacture and marketing of devices and biologic products for the extremity, hip and knee
repair and reconstruction markets. The Company is a leading provider of surgical solutions for the
foot and ankle market. The Company has been in business for more than 50 years and
headquarters Wright Medical Technology, Inc. 5677 Airline Road Arlington, TN 38002 901.867.9971 phone |
www.wmt.com |
markets its products in over 60 countries worldwide. For more information about Wright
Medical, visit the Companys website at www.wmt.com.
This press release contains forward-looking statements as defined under U.S. federal securities
laws. These statements reflect managements current knowledge, assumptions, beliefs, estimates,
and expectations and express managements current views of future performance, results, and trends
and may be identified by their use of terms such as anticipate, believe, could, estimate,
expect, intend, may, plan, predict, project, will, and other similar terms.
Forward-looking statements are subject to a number of risks and uncertainties that could cause the
Companys actual results to materially differ from those described in the forward-looking
statements. Such risks and uncertainties include the impact of the Companys settlement of the
federal investigation into the Companys consulting arrangements with orthopaedic surgeons relating
to its hip and knee products in the United States, including the Companys compliance with the DPA
through September 2011 and the CIA through September 2015, and those risks and uncertainties
discussed in the Companys filings with the Securities and Exchange Commission (including those
described in Item 1A of the Companys Annual Report on Form 10-K for the year ended December 31,
2009, under the heading, Risk Factors and the Companys subsequently filed Securities and
Exchange Act of 1934 reports). Readers should not place undue reliance on forward-looking
statements. Such statements are made as of the date of this report, and the Company undertakes no
obligation to update such statements after this date.
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headquarters Wright Medical Technology, Inc. 5677 Airline Road Arlington, TN 38002 901.867.9971 phone |
www.wmt.com |