Orthofix International will pay $30 million to settle allegations that an Orthofix unit – Blackstone Medical – paid illegal kickbacks to physicians in order to induce use of the company’s products. Orthofix, which manufactures spinal implants and other spinal surgery products, is a publicly-traded company headquartered in Curacao. Federal officials alleged that Blackstone paid kickbacks to spinal surgeons.
These alleged kickbacks took a number of forms, including sham consulting agreements, sham royalty arrangements, sham research grants, travel and entertainment. The allegations were initially alleged in a whistleblower lawsuit filed under the False Claims Act. The whistleblower in this case, Susan Hutcheson, will receive $8 million as her share of the settlement amount. Orthofix also agreed to enter into a corporate integrity agreement with the Office of Inspector General of the Department of Health and Human Services.
Source: Corporate Crime Reporter
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