Pentax Paying $43 Million in Endoscope Case
The Justice Department says Pentax Medical Company will pay $43 million to resolve criminal charges based on the company’s shipment of four types of endoscopes for 18 months without FDA-cleared instructions for use and the company’s failure to file timely reports of two infractions associated with its endoscopes. Pentax was charged in a criminal complaint filed 4/7 in a New Jersey federal court with distributing misbranded medical devices in interstate commerce.
A Justice Department statement says the company has entered into a three-year deferred prosecution agreement that will allow it to avoid conviction if it complies with the reform and enhanced compliance requirements outlined in the agreement. The company has agreed to pay a $40 million criminal fine and to forfeit $3 million.
The statement says that Pentax agrees that information in the criminal complaint is true, including that it made a deliberate business decision not to use revised FDA-cleared instructions for cleaning the endoscopes because it feared losing business due to the instructions. The company reportedly decided not to use the instructions because they would require customers to spend more time cleaning the scopes.