Merit Medical Systems Finalizes Resolution with the Government

Rhea-AI Summary

Merit Medical Systems (NASDAQ: MMSI) announced a settlement with the U.S. Department of Justice and Health and Human Services, opting to pay $18 million to avoid litigation costs. The settlement does not imply wrongdoing, as Merit denies the allegations. The company aims to refocus on its core mission of customer service in healthcare.

Founded in 1987, Merit specializes in proprietary disposable medical devices for various medical procedures, serving hospitals globally with a workforce of around 6,000 personnel across numerous locations.

Positive

• Settlement allows Merit to avoid lengthy litigation costs, enabling refocus on core business.
• No admission of wrongdoing, preserving company reputation.

Negative

• Settlement cost of $18 million may impact short-term financial performance.

SOUTH JORDAN, Utah, Oct. 13, 2020 (GLOBE NEWSWIRE) -- Merit Medical Systems, Inc. (NASDAQ: MMSI), a leading manufacturer and marketer of proprietary disposable devices used in interventional, diagnostic and therapeutic procedures, particularly in cardiology, radiology, oncology, critical care and endoscopy, announced today that it has finalized its settlement with the U.S. Department of Justice and the U.S. Department of Health and Human Services. In order to avoid distraction from its core mission, and the cost of litigating the matter to success, Merit agreed to pay $18 million to the federal government and certain states. The settlement agreement does not constitute a finding of wrongdoing by Merit or its management, and it expressly recognizes that Merit denies the allegations.

Merit looks forward to continuing to focus each day on its mission: To be the most customer-focused company in healthcare.

ABOUT MERIT

Founded in 1987, Merit Medical Systems, Inc. is engaged in the development, manufacture and distribution of proprietary disposable medical devices used in interventional, diagnostic and therapeutic procedures, particularly in cardiology, radiology, oncology, critical care and endoscopy. Merit serves client hospitals worldwide with a domestic and international sales force and clinical support team totaling in excess of 500 individuals. Merit employs approximately 6,000 people worldwide with facilities in South Jordan, Utah; Pearland, Texas; Richmond, Virginia; Malvern, Pennsylvania; Rockland, Massachusetts; Aliso Viejo, California; Maastricht and Venlo, The Netherlands; Paris, France; Galway, Ireland; Beijing, China; Tijuana, Mexico; Joinville, Brazil; Markham, Ontario, Canada; Melbourne, Australia; Tokyo, Japan; Reading, United Kingdom; Johannesburg, South Africa; and Singapore.

CONTACTS:

Teresa Johnson
Corporate Communications
(801) 208-4295 (office)
tjohnson@merit.com

Patrick McCarty
Investor Relations
(801) 208-4581 (office)
patrick.mccarty@merit.com

FAQ

What is the settlement amount Merit Medical Systems is paying?

Merit Medical Systems is paying $18 million as part of the settlement.

What accusations did Merit Medical Systems deny?

Merit Medical Systems denies the allegations that led to the settlement.

How will the settlement affect Merit Medical Systems' operations?

The settlement allows Merit to avoid distractions from its core mission.

When was the settlement with the U.S. Department of Justice announced?

The settlement was announced on October 13, 2020.

What is the focus of Merit Medical Systems' business?

Merit Medical Systems focuses on manufacturing disposable medical devices for interventional, diagnostic, and therapeutic procedures.