Healthcare Industry News: Ela Medical
News Release - October 22, 2010
Sorin Group Announces Full and Final Settlement of Investigation by Department of Justice
Full and Final Settlement Ensures Focus on Plan for Cardiac Rhythm Management Business Unit in United StatesMILAN--(Healthcare Sales & Marketing Network)-- Sorin Group, (MIL:SRN.mi ) (Reuters Code: SORN.MI), a global medical device company and a leader in the treatment of cardiovascular diseases, announced today that it has concluded a full and final settlement of the United States Department of Justice investigation into sales and marketing practices of its subsidiary Ela Medical, Inc. and of former independent sales representatives. Tentative settlement had been previously announced by the Group on March 12th, 2010.
The Company will immediately pay $10 million (€7.2 million) to the United States Government. A provision for this amount had been booked in the 2009 financial accounts, therefore the settlement will have no impact on either the Company’s fourth quarter or its full year 2010 financial statements. The settlement will also not impact year-end 2010 guidance for consolidated net debt (€150 million), which has already taken into account the settlement cash-out.
Andre-Michel Ballester, Chief Executive Officer of Sorin S.p.A., said, "As we announced in March this comprehensive settlement avoids the uncertainty of protracted litigation and ensures focus on our future plans for CRM in the United States."
Commenting on the completion of the settlement, Dan Hackman, Ela Medical, Inc.’s Senior Vice President for US Cardiac Rhythm Management commented, "Closure of this investigation places this legacy issue firmly behind us and clearly enhances our ability to execute on our plans for CRM in the United States. Our commitment to provide patients and healthcare providers with life-saving and life-enhancing innovation, and to conduct our business in a highly ethical manner is stronger than ever.”
About Sorin Group
Sorin Group (www.sorin.com) is a global, medical device company and a leader in the treatment of cardiovascular diseases. The Company develops, manufactures and markets medical technologies for cardiac surgery and for the treatment of cardiac rhythm disorders. With 3,600 employees worldwide, the Group focuses on three major therapeutic areas that include: cardiopulmonary bypass (extracorporeal circulation and autotransfusion systems), cardiac rhythm management, and heart valve repair and replacement. Every year, over 1 million patients are treated with Sorin Group devices in more than 80 countries.
For more information, please visit: www.sorin.com
Source: Sorin Group
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