A U.S. subsidiary of Olympus (TYO:7733) agreed to pony up $623.2 million to resolve criminal and civil charges that it paid kickbacks to doctors and hospitals for using its medical imaging equipment, the U.S. Justice Dept. said yesterday.
Federal prosecutors alleged that the schemes helped U.S. Olympus Corp. of the Americas and Olympus Latin America reap more than $600 million in sales and $230 million in gross profits.
The feds said 1 doctor who got to use $400,000 worth of Olympus medical equipment for free played a role in a New York City hospital’s decision to buy Olympus products.
Olympus Corp. of the Americas agreed to put up a $312.4 million criminal penalty and an additional $310.8 million to settle civil claims, according to the Justice Dept. Olympus Latin America is due to pay another $22.8 million for its part in the alleged schemes.
“We can confirm that the previous conduct did not adversely affect patient health or patient care,” Olympus said. The company must abide by a deferred prosecution agreement for 3 years to avoid criminal charges.