The SEC announced yesterday that it awarded more than $2.5 million to joint whistleblowers who reportedly raised concerns over Orthofix (NSDQ:OFIX).
Although the SEC did not name the company related to the whistleblower award in its news release, Reuters reported that an attorney for the whistleblowers confirmed that the money was awarded as a result of a case against Orthofix International from 2017.
In January 2017, Orthofix International entered into its second Foreign Corrupt Practices Act (FCPA) settlement in less than 5 years, resolving allegations with the U.S. Securities and Exchange Commission that the company’s Brazilian subsidiary made improper payments to doctors at government-owned hospitals in Brazil to increase sales.
Lewisville, Texas-based Orthofix agreed to the entry of two SEC orders instituting cease-and-desist proceedings against the company: a $6.1 million order centered on alleged violations of the FCPA and an $8.25 million order focused on non-bribery-related securities violations.
The SEC said yesterday that the whistleblowers who received the award offered a tip “based largely on highly probative independent analysis of a public company’s filings,” leading to successful enforcement actions.
“Detailed analysis by outsiders of companies can have a significant impact on the enforcement of the federal securities laws,” Chief of the Office of the Whistleblower Jane Norberg said in the SEC release. “Today’s award demonstrates the commission’s commitment to awarding individuals who provide high quality independent analysis that leads to successful enforcement actions.”
