Sorin Group, (MIL:SRN) (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.
“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.”
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."