Device Maker Arthrex to Pay $16 Million to Settle Kickback Case

Arthrex Inc., a Florida-based medical device company, agreed to pay $16 million to resolve allegations that it violated the False Claims Act by paying kickbacks that caused the submission of false claims to Medicare, according to a Justice Department news release.

The settlement resolves allegations that Arthex agreed to provide remuneration to a Colorado-based orthopedic surgeon in the form of royalty payments purportedly for the surgeon’s contributions to the SutureBridge and SpeedBridge products. The U.S. contended that the company’s participation in this arrangement violated the Federal Anti-Kickback statute and the False Claims Act.

In connection with the settlement, Arthrex ...