Wright Medical transcends deferred prosecution agreement in federal kickbacks beef

October 9, 2012 by MassDevice staff

Orthopedic devices maker Wright Medical notes the expiration of a deferred prosecution agreement signed with a U.S. Attorney's Office over allegations that the company engaged in illegal kickbacks for hip and knee devices.

Wright Medical logo

Wright Medical (NSDQ:WMGI) is finally off the hook in a years-long federal beef over accusations that the company engaged in an illegal kickback scheme.

The orthopedics devices maker announced that it fulfilled its agreement with the U.S. Attorney's Office for the state of New Jersey and has received a dismissal notice for a complaint filed in court.

Wright in 2010 paid nearly $8 million and signed a deferred prosecution agreement, without admitting to any wrongdoing, to settle federal charges that it operated a kickbacks scheme to drive sales of its hip and knee implants.

Sign up to get our free newsletters delivered right to your inbox.

The feds charged Wright with using consulting gigs with physicians to funnel alleged kickbacks to the docs. The settlement  included a year-long probation of sorts, during which former U.S. Attorney James Tucker and a monitoring team helped "instill and implement a compliant corporate culture," according to a Dept. of Justice statement.

During the probation period, the Attorney General's office promised not to prosecute the company further as long as Wright toed the line.

Comments