Smith & Nephew Says DOJ Inquiry Stems from Independent Sales Rep
Following statements from Zimmer and Striker, Smith & Nephew is identifying itself, if indirectly, as the source of the events that triggered a DOJ investigation for possible antitrust business practices in orthopedics. The company’s release states:
“Smith & Nephew instituted an internal investigation in order to cooperate fully with the Justice Department. Through this internal investigation it has come to our attention that an independent orthopaedic sales representative under contract to the Company sent an email on October 28, 2005 to competitors. That email appears to have resulted from a hospital’s request for proposals from the Company and its competitors regarding their orthopaedic implant products. The email proposed to the Company’s competitors that they join in a coordinated response to the hospital’s request. That email was in clear contravention of Smith & Nephew’s policies and was not authorised by Company management. To the best of the Company’s knowledge, the October 28, 2005 email was never acted upon by the Company or any of its competitors in responding to the hospital or any customer and resulted in no anti-competitive agreement. The independent sales representative and the Company no longer have a business relationship.”
July 31, 2006 Related topics: Legal & legislative, Ethics & Scandals, Orthopedic