Orthofix (NSDQ:OFIX) said it’s put to rest a federal kickbacks case against its Blackstone Medical subsidiary for $32 million, consummating a deal the medical device company announced earlier this year.
The government accused Blackstone, which Orthofix acquired in 2006, of violating the False Claims Act with gifts of cash or other valuables to doctors in return for using Blackstone’s spinal implants.
Orthofix said in February that it was close to settling a number of cases, including Blackstone, which it planned to pay using an escrow fun established when it bought the company.
Sign up to get our free newsletters delivered straight to your inbox
The deal also settles a separate whistleblower lawsuit filed against it, according to a press release.
"Orthofix has made significant improvement to its compliance practices, and I look forward to a continued stronger focus on the company’s operations, including investments in R&D to position the company for long-term growth," president & CEO Robert Vaters said in prepared remarks.
In June Orthofix said it had agreed to plead guilty to felony obstruction of justices charges and pay $42 million to settle the charges against it, but a federal judge last month nixed the deal.
Orthofix settled another case involving allegations of bribery stemming from a former Mexican distributor, paying more than $7.4 million last July.