$34 Million Settlement reached in Whistleblower lawsuit with Orthofix Inc

Settlement Amount: 
$34,234,263

A settlement has been reached in a whistleblower class action lawsuit brought against Orthofix Inc who is accused of improperly waiving patient co-payments and paying kickbacks to physicians.

The whistleblower will receive a $9,243,251 share of the civil settlement amount.

The government's complaint stemmed from a whistleblower lawsuit that was filed in March 2005.  The United States alleged that Orthofix  improperly waived patient co-payments, thus misstating their true cost and resulting in overpayments by federal programs; paid kickbacks to physicians and their staffs in the form of “fitter fees,” referral fees and other comparable fees, to induce the use of Orthofix products; caused the submission of falsified certificates of medical necessity; and failed to advise patients of their right to rent rather than purchase Orthofix products.

The company has also agreed to plead guilty to a felony of obstruction of a federal audit, and to pay a $7,765,737 criminal fine. The company’s criminal guilty plea involved its failure to disclose information concerning its practices regarding certificates of medical necessity to a Medicare contractor during a June 2008 audit. Five individual Orthofix employees had previously pleaded guilty to criminal charges in connection with this matter.

If you have a similar case please fill out the form below or email mail@whistleblowerinstitute.com or call: 619-452–1218

OR

If you or someone you know experienced a similar situation or any other wrongdoing within a corporation you should contact mail@whistleblowerinstitute.com or call: 619-452–1218

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