Violation Tracker Individual Record

Company: 
OtisMed Corp.
Current Parent Company: 
Stryker
Penalty: 
$79,560,000
Year: 
2014
Date: 
December 8, 2014
Primary Offense: 
drug or medical equipment safety violation
Violation Description: 

OtisMed and its CEO Charlie Chi pleaded guilty in federal court in Newark, New Jersey. OtisMed pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging it with distributing, with the intent to defraud and mislead, adulterated medical devices into interstate commerce in violation of the Food, Drug, and Cosmetic Act. Judge Cecchi fined OtisMed $34.4 million and ordered $5.16 million in criminal forfeiture. In a separate civil settlement, OtisMed agreed to pay $40 million plus interest to resolve its civil liability.

Level of Government: 
federal
Action Type: 
agency action
Agency: 
Food and Drug Administration referral to the Justice Department
Civil or Criminal Case: 
criminal
HQ Country of Parent: 
USA
HQ State of Parent: 
Michigan
Ownership Structure of Parent: 
publicly traded
Major Industry of Parent: 
medical equipment and supplies
Specific Industry of Parent: 
medical supplies
Source Notes: 
If an online information source is not working, check the Violation Tracker Data Sources page for an updated link.
Parent company note: 
Parent-subsidiary relationship is current as of the most recent revision listed in the Update Log.