March 25 (Reuters) - Zimmer Biomet Holdings Inc said on Friday a U.S. investigation into foreign bribes at Biomet, before it was acquired by Zimmer, would continue past a deferred prosecution agreement deadline of March 26.
A deferred prosecution agreement or DPA is a contract between a person or a corporation charged with a criminal act and the prosecuting authority, which diverts the case out of the formal criminal justice system.
If the Department of Justice determines that Biomet’s activities in Brazil and Mexico breached the DPA, then it could bring further actions against the firm. The company said it continues to cooperate with authorities.
In 2012, Biomet entered into the agreement with the Justice Department to resolve alleged violations of the Foreign Corrupt Practices Act according to which Biomet bribed government officials in Brazil and Mexico.
The company said on Friday the DoJ and the U.S. Securities and Exchange Commission will further discuss the case in the second quarter, and that the matter would likely not conclude by the deadline.
Zimmer closed the $14 billion deal to buy Biomet, a rival orthopedic products maker, in June 2015. (Reporting by Amrutha Penumudi in Bengaluru; Editing by Cynthia Osterman)