Olympus Corporation of the Americas and Subsidiary Reach Settlement Agreements with U.S. Department of Justice

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Mar 01, 2016, 09:21 ET

CENTER VALLEY, Pa., March 1, 2016 /PRNewswire/ -- On Feb 29, 2016, Olympus Corporation of the Americas (OCA) reached a settlement with the U.S. Department of Justice (DOJ) on two separate investigations. These investigations were acknowledged publicly in February and May 2015, and again in February 2016, when the Olympus Corporation in Tokyo announced the booking of reserves against the potential settlement amounts.

Beginning in October 2011, the DOJ conducted an investigation into alleged violations of the U.S. Foreign Corrupt Practices Act (FCPA) by OCA's Latin American medical business (Olympus Latin America or OLA). The Company worked cooperatively with the U.S. Government including conducting an extensive internal investigation to determine the facts related to OLA's financial relationships with health care providers employed at government-owned facilities who could authorize or influence purchase decisions, and to resolve the matter appropriately through a settlement. As a result, Olympus Latin America (OLA) has agreed to pay $22.8M to resolve allegations of violating the FCPA and enter into a Deferred Prosecution Agreement (DPA) with compliance obligations.

Separately, the U.S. Attorney's Office for the District of New Jersey conducted an investigation into interactions and financial relationships with medical business customers and with physicians who use Olympus products. OCA cooperated with the investigation of the U.S. Attorney's Office, which concerned activities between 2006 and 2011 to induce the purchase of Olympus products. Through the resulting separate settlement, OCA has agreed to pay $612M plus interest to resolve parallel civil and criminal investigations related to allegations of violating the U.S. Anti-Kickback Statute and, by extension, the U.S. False Claims Act. As part of the global settlement, OCA is entering into a separate DPA, a Civil Settlement Agreement, Medicaid State Settlement Agreements, and a Corporate Integrity Agreement (CIA), which requires certain compliance measures including the appointment of a monitor.

Commenting on the agreements, Olympus Corporation of the Americas' President and CEO Nacho Abia said, "Olympus leadership acknowledges the Company's responsibility for the past conduct, which does not represent the values of Olympus or its employees. Olympus is committed to complying with all laws and regulations, and to adhering to our own rigorous Code of Conduct which guides our business processes, decisions and behavior. The Company has implemented and will continue to enhance its robust compliance program."

"Our ability to meet the needs of our customers and their patients is of paramount importance and we can confirm that the previous conduct did not adversely affect patient health or patient care and the investigations and settlements have had no impact on product or service availability. The mission of Olympus is to help people around the world lead safer, healthier and more fulfilling lives. We remain committed to achieving this mission, both as individuals and as a Company, with uncompromised integrity."

About Olympus and Olympus Corporation of the Americas
Olympus is a global medical device and precision imaging technology leader, designing and delivering innovative solutions to enhance people's lives every day. Olympus' core businesses are:

Medical and Surgical Products: Gastrointestinal endoscopy, minimally invasive surgical products, and other medical devices
Life Science Imaging Systems: Advanced research, clinical/educational microscopes, and research/educational digital imaging systems
Industrial Measurement and Imaging Instruments: Industrial research, engineering, test, inspection and measuring instruments
Cameras and Audio Products: Digital cameras and voice recorders

Olympus Corporation of the Americas -- a wholly owned subsidiary of Olympus Corporation in Tokyo, Japan -- is headquartered in Center Valley, Pennsylvania and employs more than 5,000 people across North and South America. For more information visit: www.olympusamerica.com.

SOURCE Olympus Corporation of the Americas