DePuy Synthes, Kickbacks, Massachusetts 2023
BOSTON – Johnson & Johnson subsidiary DePuy Synthes, Inc. and DePuy Synthes Sales, Inc. have agreed to pay approximately $9.75 million to resolve allegations that they violated the Anti-Kickback Statute and the False Claims Act by providing free products to a Massachusetts-based surgeon to induce the surgeon to use DePuy products in his procedures.
DePuy manufactures and distributes medical devices, including spinal implants, and is headquartered in Raynham, Mass. The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare and other federally funded programs.
According to the settlement agreement, DePuy admits, acknowledges and accepts its responsibility for the facts underlying the government’s allegations. From at least July 2013 through February 2018, DePuy gave the surgeon DePuy products, including implants and instruments, such as cages, rods, screws, plates and modular access and retraction systems.
The surgeon performed more than 20 surgeries over the course of multiple trips to six countries, specifically, Bahrain, Kingdom of Saudi Arabia, Kuwait, Lebanon, the United Arab Emirates and Qatar. In many of these surgeries, the surgeon used DePuy products, worth thousands of dollars, that DePuy sales representatives had provided to him.
“Today the United States resolves allegations that DePuy provided over $100,000 worth of free product to a surgeon in order to secure and reward that physician’s continued business,” said United States Attorney Rachael S. Rollins. “Unlawful kickbacks can severely distort medical judgment as well as the market for medical devices.
The millions of patients that depend on our health care system deserve untainted medical decisions. This settlement reflects our commitment to stamping out illegal kickbacks.”
Defendant: DePuy Synthes, Inc. and DePuy Synthes Sales, Inc.
Criminal Charges: Violating the Anti-Kickback Statute and the False Claims Act
City and State: Boston, Massachusetts
Exact Date: N/A (settlement agreement)
Sentence or Outcome: $9.75 million settlement
Dollar Amounts: $9.75 million
Companies, banks, funds, and other legal entities ARE valid defendants/respondents when the source action is against that entity.
Key Facts
- State: Massachusetts
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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