Wright Medical Clears Legal Hurdle

A criminal complaint filed against Wright Medical Technology Inc. in September 2010 has been dismissed by the District Court of New Jersey. This move closes at least one chapter of legal woes that have plagued the company for a number of years. The orthopedic device company was accused of using consulting agreements with orthopedic surgeons as an inducement to use its artificial hip and knee reconstruction products. The deferred prosecution agreement (DPA, where a prosecutor agrees to delay a case if the defendant fulfills certain requirements) was executed in September 2010 and expired this September. The case dismissal was ordered on Oct. 4 by U.S. Magistrate Judge Madeline Cox-Arleo.

Wright had agreed to accept the appointment of a federal monitor to review its compliance with the terms of the DPA. Since September 2010, Wright has been monitored by James B. Tucker, former U.S. Attorney for the Southern District of Mississippi.

“We have taken significant steps to ensure that we successfully completed the DPA and have an effective, sustainable, global compliance program,” said Robert Palmisano, president and CEO of Wright. “While exiting the DPA is an important milestone, executing an effective and efficient compliance system and promoting the highest standards of ethical and legal conduct in all of the markets that we serve will remain a focal point for the company.”

“During the past 24 months, Wright Medical has worked with James Tucker and his monitor team to instill and implement a compliant corporate culture,” First Assistant U.S. Attorney Gil Childers said. “We are pleased to announce that Wright Medical has fully complied with the terms of the DPA and we have accordingly moved today to dismiss the criminal complaint. We hope that the company continues its current trajectory and will serve as an industry leader in corporate compliance.”

The U.S. government is represented by Assistant U.S. Attorney Joseph Mack of the U.S. Attorney’s Office Health Care and Government Fraud Unit.

Wright Medical Technology Inc. is an orthopedic medical device company that manufactures devices for the foot and ankle market. The company is based in Arlington, Tenn.