CareFusion Reaches Agreement In Principle On Previously Disclosed Matter With Federal Government
SAN DIEGO, April 25, 2013 /PRNewswire/ -- CareFusion Corp. (NYSE: CFN), a leading, global medical technology company, today announced an agreement in principle to resolve previously disclosed government investigations related to prior sales and marketing practices for its ChloraPrep® skin preparation product and its relationships with health care professionals.
The company expects to pay the government approximately $41 million to resolve the allegations. CareFusion will record the charge in the third quarter of fiscal 2013 to establish a reserve for this amount. In connection with these matters, CareFusion has entered into a non-prosecution agreement and will continue to cooperate with the government.
"We are pleased to have reached this important milestone as we continue to build our foundation for future growth," said Kieran T. Gallahue , chairman and CEO. "Since our spinoff, we have made significant investments to improve our quality systems, including our sales and marketing practices, and we remain committed to adhering to the highest standards."
The agreement in principle remains subject to several conditions, including the completion and execution of a formal settlement agreement and other required documentation. The amount and timing of the payment are subject to the final terms of the settlement agreement.
About CareFusion Corporation
CareFusion (NYSE: CFN) is a global corporation serving the health care industry with products and services that help hospitals measurably improve the safety and quality of care. The company develops market-leading technologies including Alaris® infusion pumps, Pyxis® automated dispensing and patient identification systems, AVEA®, AirLife™ and LTV® series ventilation and respiratory products, ChloraPrep® products, MedMined® services for data mining surveillance, V. Mueller® surgical instruments, and an extensive line of products that support interventional medicine. CareFusion employs more than 15,000 people across its global operations. More information may be found at www.carefusion.com.