Orthofix To Pay $42M To End DOJ Medicare Fraud Case

Law360, New York (December 14, 2012, 5:43 PM EST) -- A Massachusetts federal judge on Friday imposed about $42 million in criminal fines and False Claims Act civil penalties on Orthofix International NV in a Medicare fraud case accusing the company of obstructing audits and paying kickbacks to doctors, the U.S. Department of Justice said.

U.S. District Judge William G. Young, who a day earlier had rejected a guilty plea and $7.8 million criminal fine Orthofix had negotiated with the government over concerns that the deal unduly tied his hands regarding sentencing — the second time he had done so — imposed a $7.6 million fine and $34 million in civil...

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