Stryker’s OtisMed Pleads Guilty, Will Pay $80 Million

Stryker Corp. (SYK)’s OtisMed unit pleaded guilty to selling devices used in knee-replacement surgeries in September 2009 without regulatory approval and will pay more than $80 million to resolve the case.

OtisMed will pay a fine of $34.4 million and forfeit $5.16 million in a criminal case, while paying a civil fine of $41.2 million. The company pleaded guilty today in federal court in Newark, New Jersey, where former Chief Executive Officer Charlie Chi also pleaded guilty. Stryker bought OtisMed Corp. in November 2009.

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