Spinal Device Maker to Pay $12 Million to Settle Kickback Claims

Spinal device manufacturer Innovasis Inc. and its senior executives will pay $12 million to resolve allegations that they violated the False Claims Act by paying kickbacks to spine surgeons to induce their use of Innovasis’s spinal devices, according to the Justice Department Wednesday.

Innovasis provided improper remuneration to 17 orthopedic surgeons and neurosurgeons to encourage them to use Innovasis spinal implants, devices, and other equipment in procedures performed on Medicare beneficiaries, the DOJ said.

During the relevant period, Brent Felix and his brother Garth Felix allegedly controlled or otherwise directed Innovasis’s operations, strategic decisions, and the agreements with surgeons ...