LAWSUITS NEWS & LEGAL INFORMATION
Orthopedic Consultants
Washington, DC: (Oct-31-07) The US Department of Justice brought charges against five major makers of orthopedic device companies, alleging that they had not disclosed the millions of dollars in payments they made to US consultants. The suit, filed in September 2007, claimed that the charges included 47 cases where payments topped more than $1 million.
As part of a settlement reached, the companies agreed to make disclosures, ending a long running probe of financial relationships between companies and surgeons. Zimmer Holdings Inc., the largest pure-play maker of replacement hips and knees, reported 21 instances of payments topping $1 million, more than double the number at any other company. Sources claimed that Zimmer, DePuy, Smith & Nephew and Biomet paid a combined $311 million to resolve allegations they paid off surgeons through consulting deals in order to get them to use their products, with the biggest payment of $169.5 million made by Zimmer. Records show that apart from monetary payouts, the companies also entered into deferred-prosecution agreements that allow them to avoid criminal prosecution if they adopt industry reforms and complete 18 months of corporate monitoring. [CNN NEWS: ORTHOPEDIC CONSULTANTS]
Published on Nov-1-07
As part of a settlement reached, the companies agreed to make disclosures, ending a long running probe of financial relationships between companies and surgeons. Zimmer Holdings Inc., the largest pure-play maker of replacement hips and knees, reported 21 instances of payments topping $1 million, more than double the number at any other company. Sources claimed that Zimmer, DePuy, Smith & Nephew and Biomet paid a combined $311 million to resolve allegations they paid off surgeons through consulting deals in order to get them to use their products, with the biggest payment of $169.5 million made by Zimmer. Records show that apart from monetary payouts, the companies also entered into deferred-prosecution agreements that allow them to avoid criminal prosecution if they adopt industry reforms and complete 18 months of corporate monitoring. [
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