US GOVERNMENT SETTLEMENT AGREEMENTS
Dear Olympus Employees & Families, Customers, Partners and Community Stakeholders,
As you may be aware, Olympus Corporation of the Americas (OCA) recently entered into civil, criminal, and administrative settlements with the United States in connection with the sales and marketing of certain OCA products. This letter provides you with additional information about the settlements, explains OCA’s commitments going forward, and provides you with access to information about those commitments.
In general terms, the Government alleged that OCA unlawfully provided inducements to doctors, hospitals, and other health care providers in the United States to buy OCA products by giving various types of remuneration including grants, payments for travel and recreational activities, consulting payments, and gifts or no-charge loans of OCA equipment, in violation of the Federal Anti-kickback Statute. To resolve these matters, OCA entered into a civil settlement with the United States for $306 million plus interest. OCA also entered into a three-year Deferred Prosecution Agreement (DPA), pursuant to which OCA agreed to pay an additional $306 million plus interest and to undertake certain compliance obligations, including the retention of an outside, independent monitor who will oversee OCA’s compliance with the DPA. More information about this settlement may be found at the following: https://www.justice.gov/usao-nj
As part of the settlement, OCA also entered into a five-year corporate integrity agreement with the Office of Inspector General of the U.S. Department of Health and Human Services. The corporate integrity agreement is available at http://oig.hhs.gov/compliance/corporate-integrity-agreements/cia-documents.asp. Under this agreement, OCA agreed to undertake certain obligations to promote compliance with Federal health care program and FDA requirements. OCA also agreed to notify health care providers about the settlement and inform them that they can report any questionable practices by OCA representatives using the information set out further below.
In addition, the Government alleged that OCA's Latin American subsidiary (Olympus Latin America or OLA) engaged in certain conduct in Central and South America in violation of the Foreign Corrupt Practices Act (FCPA). To resolve this matter, OLA has entered into a three-year Deferred Prosecution Agreement (DPA), pursuant to which OLA has agreed to pay a $22.8 million criminal penalty and to undertake certain compliance obligations. More information about this settlement may be found at the following: https://www.justice.gov/usao-nj
Olympus leadership acknowledges the Company’s responsibility for the past conduct, which does not represent the values of Olympus or its employees. Olympus is committed to complying with all laws and regulations and to adhering to our own rigorous Code of Conduct which guides our business processes, decisions and behavior. The Company has implemented and will continue to enhance its robust compliance program.
The mission of Olympus is to help people around the world lead safer, healthier and more fulfilling lives. We remain committed to achieving this mission, both as individuals and as a Company, with uncompromised integrity.
Questions regarding the settlements referenced above
Please call OCA at 1-866-861-8386 or send your inquiries via email to Compliance@olympus.com if you have questions about the settlements.
To report inappropriate product promotion or questionable conduct
Please call OCA at:
or visit us at http://olympusamerica.ethicspoint.com to report any instances in which you believe that an OCA sales representative inappropriately promoted a product or engaged in other questionable conduct.