SEC Amended Complaint

In the case that Zimmer’s shareholders filed against Zimmer Holdings, Inc. and Zimmer’s two top officials, CEO David Dvorak and CFO James Crines, an amended consolidated complaint, recently filed, elaborates on the evidence against Zimmer’s top officials that demonstrates the information they concealed.   The evidence includes over 20 confidential witnesses, ranging from employees over Zimmer to sales respresentatives to doctors, many of whom described important information sent to Zimmer’s headquarters before their January 2008 shareholders meeting, that was not relayed to shareholders or market analysts. 

Shareholders argue that Zimmer was well aware of problems with the Zimmer Durom, long before they gave their guidance for 2008.   Among the evidence presented in the recently filed amended complaint is information that Zimmer’s officials knew about the Zimmer Durom.

One of the confidential witnesses is a former Director of Communications for Zimmer who was appointed to the crisis team that investigated the Durom failures.  According to the complaint, this witness verified that top Zimmer officials knew about Dorr’s warnings for many months, and it wasn’t until the issue became public that they put together a team to investigate the problem.  The complaint says this about Zimmer’s crisis team:

Instead of ascertaining the truth of the Durom Cup’s reported defects, the crisis team was tasked with searching for evidence to support the Company’s position that surgeons were to blame.  CW16 expolained that it took many months before Zimmer took action and as a result hundreds of people likely received a Durom Cup implanted in the interim period.

To learn more about evidence put forth in this complaint regarding Zimmer’s reckless and profit driven  actions, please read the complaint in the following link:

Amended Complaint