Published: March 12, 2010
Sorin Group Announces Tentative Settlement of Investigation by Department of Justice
MILAN - (BUSINESS WIRE) - Sorin Group, (MIL:SRN)(Reuters Code: SORN.MI), a global company and a
leader in the treatment of cardiovascular diseases, announced today that
it has reached a tentative settlement of the previously disclosed 2006
United States Department of Justice investigation into sales and
marketing practices of its subsidiary Ela Medical Inc. and of former
independent sales representatives. Settlement is subject to completion
of negotiations and approval of a definitive agreement and corporate
integrity agreement with the Department of Justice and Office of
Inspector General of the Department of Health and Human Services.
No charges will be brought against the company, its employees or
management. No issues relating to patient or product safety, quality or
efficacy formed part of the investigation. The Company admits no
wrongdoing as part of the settlement.
The Company believes it will successfully conclude negotiations required
for a USD $10 million settlement, which would be paid most likely in Q3,
2010.
On the basis of the above, the Company has booked a provision reflecting
this subsequent event for € 7.2 million (on a pretax basis) in the 2009
consolidated financial statements which will be approved by the Board of
Directors on March 19th. This provision was not included in
the 2009 preliminary results released on February 10th,
because at that time the amount of the settlement could not be estimated
reliably. The settlement will have no impact on the 2010 consolidated
income statement and therefore the Company confirms - in absolute terms
- previous guidance for 2010, including the net profit guidance which is
confirmed at 33-37 million Euro.
Andre-Michel Ballester, Chief Executive Officer of Sorin S.p.A., said, "We
welcome this comprehensive settlement in order to close this chapter of
our past, and avoid the uncertainty of protracted litigation. Over the
past three years, the Company has committed itself to cooperating fully
and openly with the Government's investigation and taking any remedial
steps needed. Ela Medical Inc. now has in place a compliance program
that we believe could serve as a standard for the industry."
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 3,500 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.
In the United States:
Media
Rosalba
Cano
Vice President
Spectrum Science
Tel: +1 202-955-6222
x 2579
e-mail: rcano@spectrumscience.com
or
Christina
Plourde
Manager Public Affairs
Spectrum Science
Tel: + 1
202-955-622 x 2596
e-mail: cplourde@spectrumscience.com
or
Investor
Relations
Carla Vidra
Investor Relations
Tel: +39 02
69 96 97 16
e-mail: carla.vidra@sorin.com
or
Outside
the United States
Media
Martine Konorski
Director,
Corporate Communications
Sorin Group
Tel: +33 (0)1 46 01 33 78
Mobile:
+33 (0)6 76 12 67 73
e-mail: martine.konorski@sorin.com
or
Investor
Relations
Carla Vidra
Investor Relations
Tel: +39 02
69 96 97 16
e-mail: carla.vidra@sorin.com
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