Biomet Inc. (“Biomet”), a medical device company based in Indiana, has settled FCPA enforcement actions with the DOJ and SEC in connection with alleged improper payments by its subsidiaries and distributors to public doctors in Argentina, Brazil, and China. Biomet’s compliance and internal audit functions failed to stop the payments even after learning about the illegal practices. Strikingly, the company’s internal audit group focused on issues of what to label the payments – concluding in one instance that the payments should be labeled “royalties” rather than “commissions” – rather than inquiring into the true nature of the payments or whether they were justified. Ultimately, more than $1.5 million in direct and indirect allegedly corrupt payments were made. Biomet, its executives, employees and agents falsely recorded the payments on its books and records as “commissions,” “royalties,” “consulting fees” and “scientific incentives” to conceal the true nature of the payments. Biomet will pay approximately $22 million to settle the DOJ and SEC charges. Biomet is the third medical device company to enter into an FCPA settlement in recent years; more are likely inasmuch as DOJ and SEC have announced that they are engaged in an ongoing global investigation into medical device companies bribing publicly-employed physicians. See Press Release, Dep’t of Justice, Third Medical Device Company Resolves Foreign Corrupt Practices Act Investigation (Mar. 26, 2012); SEC Litigation Release No. 22306, SEC Charges Medical Device Company Biomet With Foreign Bribery (Mar. 26, 2012).