Wright Medical Loses Vice President and Chief Compliance Officer

Wright Medical Technology Inc. is losing another top executive, according to The Commercial Appeal in Memphis, Tenn. Lisa L. Michaels, vice president and chief compliance officer, gave notice of her resignation on Aug. 16.

The loss is the latest in a series of exits for the Arlington, Tenn.-based imlant manufacturer. In April, former President, CEO and director Gary Henley abruptly left the company and Chief Technology Officer Frank Bono was fired for “failing to exhibit appropriate regard for the company’s ongoing compliance program.” Both moves occurred shortly before the U.S. Attorney’s Ofice and the Office of the Inspector General of the U.S. Department of Health and Human Services notified Wright Medical that it had “knowingly and willfully” breached a deferred prosecution agreement (DPA) it had reached to settle allegations it had paid kickbacks to surgeons in exchange for product use. Under the agreement, the U.S. Attorney’s Office would not prosecute Wright if it satisfied a set of obligations for one year.

In May, Raymond C. Kolls, senior vice president, general counsel and secretary, Alicia M. Napoli, vice president, Clinical & Regulatory Affairs, and Cary P. Hagan, vice president of commercial operations for Europe, all resigned. According to Wright Medical, all three did so “without good reason.” On July 28, the company reported a possible resolution with the government regarding the DPA breach.

The Board of Directors will hire a recruiting firm to conduct a national search for Michaels’ replacement, according to the newspaper. In the meantime, John Knighton, compliance director, has been named interim vice president and chief compliance officer.

An 8-K filing with the U.S. Securities and Exchange Commission on Aug. 22 said Michaels is eligible for severance benefits.