Mexico’s Health Care Agency Alleges Zimmer Fraud

Zimmer Biomet Holdings Inc. should refund Mexico’s government for more than $2.6m in illicit profits, the Instituto Mexicano del Seguro Social (Mexican Institute of Social Security, or IMSS) alleged in a lawsuit filed on 30 January in an Indiana federal court. IMSS, which provides health care services in Mexico, is suing to recoup what it spent on products made by Zimmer Biomet and its predecessor, Biomet Inc., during what the agency says was a widespread and long-running bribery scheme. Zimmer merged with Biomet in 2015. (Also see "Zimmer, Biomet Sell Off Some U.S. Assets As They Finalize A $14 Bil. Merger" - Medtech Insight, 25 June, 2015.)

The companies have settled charges that they violated overseas bribery laws with the US Securities and Exchange Commission and Department of Justice in the recent past. In 2012, Biomet paid $22.8m to resolve allegations of bribery in Argentina, Brazil and China. And in 2017, the now-merged companies paid $30.5m and entered into a deferred prosecution agreement after confessing bribery in Mexico and Brazil