Medtronic To Pay $40M To Settle Kickback Charges

Law360, New York (July 18, 2006, 12:00 AM EDT) -- Medical device maker Medtronic Inc. has agreed to pay $40 million to settle allegations that it offered kickbacks to doctors who used the company’s spinal products.

The charges were brought by the Department of Justice, which claimed that between 1998 and 2003, Medtronic’s Sofamor Danek unit illegally paid doctors through false consulting agreements, sham royalty agreements and free vacations.

The government alleges that the kickbacks violated the Anti-Kickback Statute and the False Claims Act.

In addition to the $40 million payment, Medtronic will also launch an...
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