Medtronic Settles Kickback Charges for $40 MillionMedtronic Settles Kickback Charges for $40 Million
Industry giant Medtronic Inc. yesterday agreed to pay the federal government $40 million to settle accusations that its spinal unit, Medtronic Sofamor Danek, paid kickbacks to doctors to induce them to use its products, the New York Times reports. The company did not admit any wrongdoing but settled in order to avoid protracted litigation.
July 19, 2006
The Justice Department said the kickbacks took the form of âEURoesham consulting agreements, sham royalty agreements, and lavish trips to desirable locations." Medtronic has agreed to create a database that tracks transactions not related to device sales, and to have the data reviewed by internal and external panels. Sounds like something other firms should be doing, too.
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