Orthofix Unit to Pay $30 Million to Settle False Claims Act Charge

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.

 

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