Sorin Group Reaches Tentative $10M Settlement in Justice Probe

Sorin Group, a manufacturer of devices for cardiac surgery and the treatment of cardiac rhythm disorders, has reached a tentative $10 million settlement in a 2006 U.S. Department of Justice investigation into sales and marketing practices of its subsidiary Ela Medical Inc. and of former independent sales representatives.

The company has admitted no wrongdoing as part of the settlement, and
no charges will be brought against the company, its employees or management, the company said.

The settlement will have no impact on the 2010 consolidated income statement and its net profit outlook of $45.4 million to $50.9 million, according to the Italy-based firm.

Andre-Michel Ballester, CEO, said, “We welcome this comprehensive settlement in order to close this chapter of our past and avoid the uncertainty of protracted litigation. Over the past three years, the company has committed itself to cooperating fully and openly with the government’s investigation and taking any remedial steps needed. Ela Medical Inc. now has in place a compliance program that we believe could serve as a standard for the industry.”