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Stryker to pay $80 million to settle DOJ complaint

March 13th, 2015

Stryker Corp. and Stryker’s OtisMed unit have agreed to pay nearly $80 million to settle a Stryker lawsuit levied by the U.S. Department of Justice (JOD). The JOD alleged that OtisMed marketed its knee implant cutting guide illegally, making claims that have not been investigated or approved by the U.S. Food and Drug Administration.

OtisMed CEO Charlie Chi also admitted in court that the company distributed knee replacement cutting guides even after their application for market clearance had been rejected by the FDA. Stryker bought the company in 2009, but has since run into legal troubles of its own with its metal hip replacements.

In November, Stryker agreed to pay $1.4 billion to settle hip replacement lawsuits alleging that the company released defective devices. Patients claimed the Stryker Rejuvenate and Stryker ABG II hip implant systems caused severe injuries, including tissue damage and toxic levels of metal in the bloodstream.

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