Stryker Corporation : Stryker Offered DOJ $33 Million In Knee-Device Settlement
06/05/2012| 05:21pm US/Eastern
By Anjali Athavaley
NEW YORK--Stryker Corp. (SYK) offered the U.S. Department of Justice $33 million in May to resolve 2010 allegations related to a knee device, according to a filing.
The company said it recently entered into discussion with the DOJ regarding a potential settlement. The $33 million charge is the minimum estimated amount it will take to resolve the matter, but there is no assurance a resolution will be reached. The charge is expected to reduce Stryker's diluted earnings per share by about 9 cents in the second quarter.
In 2010, Stryker received a subpoena related to the sales and marketing of the OtisKnee device. In the most-recent quarter, the orthopedics company's earnings rose 14% on an increase in hip- and knee-replacement sales.
Stryker shares were unchanged at $50.79 after-hours Tuesday.
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