Arthrex Settles Kickback Case for $16M

The US Justice Department announced on Monday that medical device manufacturer Arthrex Inc has agreed to pay $16 million to settle accusations that it paid a Colorado orthopaedic physician millions of dollars in kickbacks to use and recommend its products. The settlement settles charges made in a whistleblower case filed in federal court in Boston, alleging that, based in Naples, Florida, caused Medicare to pay for its goods based on false claims.

As part of the settlement, Arthrex did not admit any wrongdoing lawyer at Sidley Austin, Jack Pirozzolo, did not reply to a request for comment. The action was filed under the False Claims Act, which empowers whistleblowers to sue firms on behalf of the government to recover taxpayer funds paid out on the basis of false claims. Following an inquiry, the Justice Department may intervene in such cases.

According to the government, Arthrex paid a doctor in Vail, Colorado, royalties in exchange for purchasing, ordering, or recommending medical products from August 2010 to March 2021. The agreement, according to the government, ostensibly covered the doctor’s contributions to the creation of the SutureBridge and SpeedBridge devices used in joint repair surgery. According to the government, Arthrex paid him royalties at a larger percentage rate than typical.

Arthrex was accused of violating the Anti-Kickback Statute and, as a result, the False Claims Act by causing third parties to make false claims for payment to the federal healthcare programme Medicare, according to the authorities. Millett has not been charged by the department. In a statement, Marc Kasowitz of Kasowitz Benson Torres stated the allegations about the royalty payments are “manifestly incorrect” and that he was entitled to them.