Olympus Pays $85 Million for Failing to File Device Reports
Olympus Medical Systems and a former senior executive in Japan pleaded guilty 12/10 in Newark, NJ federal court for failing to file required adverse event reports involving its duodenoscopes and associated infections, and continuing to sell the devices knowing the likely failures, according to a Justice Department release. U.S. District Court Judge Stanley R. Chesler imposed an $80 million fine and $5 million criminal forfeiture against Olympus. The company has also agreed to implement “extensive compliance reforms,” the government says. Former quality and environment manager Hisao Yabe, who is scheduled to be sentenced 3/27/2019, faces a maximum penalty of a year in prison and a $100,000 fine, or twice the gain or loss from the offense.
“Olympus and Yabe failed to file important FDA reports regarding adverse events,” Justice said in the release. “It is especially troubling that they remained quiet when they received additional information from an independent expert questioning the safety of Olympus’ device. Patient safety must always be a paramount concern for medical device companies, and these defendants simply failed to treat that concern with the gravity it deserves.”
Meanwhile, FDA 12/10 issued a safety communication reporting on preliminary findings from studies it ordered that showed “higher-than-expected contamination rates after reprocessing, with up to 3% of properly collected samples testing positive for more than 100 colony forming units of low concern organisms that are unlikely to cause serious infections (but an indication of a reprocessing failure) and an additional 3% of properly collected samples testing positive for ‘high concern’ organisms.”