Don't Shake the Pom-Poms Too Quickly on Stryker - A Lot Of Problems Were Found Here


Stryker is in the news this week for agreeing to pay $1.43 billion to settle an exposure related to recalled hip implants.  For those inclined to shake their pom-poms in glee, and for those who missed it, we use the occasion to remind you of a report we wrote only in September entitled, "Analysis: Stryker Corporation - A Magnet for SEC Investigations? 5 SEC Probes in Past Two Years, Only One Disclosed"

Here are the bullet points from that report --

  • An undisclosed SEC investigation on-going as of 20-Aug-2014.
  • 5 SEC investigations since 2012.  Only one was disclosed.
  • Disclosures regarding SEC activity, when made, were analytically worthless. 
  • In settling a 6-year probe last year, the SEC concluded Stryker's internal controls were, "fatally flawed".

Our Take:  In our opinion, Stryker is a company that has no problem cutting corners or dancing on the edge of the law. Stryker appears to be a magnet for SEC investigations. We found evidence of five SEC probes involving Stryker in the past two years. Big company or not, involvement in five SEC investigations in two years is a lot ... (click on the link for the full report).

To learn more on our process and what our findings mean, click here.

Notes: The SEC did not disclose the details on investigations referenced above. The SEC reminds us that its assertion of the law enforcement exemption should not be construed as an indication by the Commission or its staff that any violations of law have occurred with respect to any person, entity, or security.  New SEC investigative activity could theoretically begin or end after the date covered by this latest information which would not be reflected here.