DePuy Synthes Pays $10 Million to Settle Kickback Scheme
Johnson & Johnson’s DePuy Synthes medical device unit has agreed to pay $9.75 million to resolve allegations it violated the False Claims Act by paying kickbacks to an orthopedic surgeon in Massachusetts to induce his use of DePuy products. The qui tam or whistleblower suit was originally filed by former DePuy sales representative Aleksej Gusakovs.
According to a Justice Department release, the company paid the unnamed surgeon kickbacks in the form of free spinal implants and tools for use in surgeries that the surgeon performed overseas to induce that surgeon to use DePuy products in surgeries performed in the U.S. As part of the settlement, DePuy admitted that from 2013 through 2018, now-former DePuy sales representatives gave the surgeon thousands of dollars’ worth of free DePuy implants and instruments, including cages, rods, screws, plates, and surgical instrumentation, it says.
“Today’s settlement makes it crystal clear that it is illegal for medical device companies to provide physicians with free medical products to win business and boost their bottom line through illegal kickback schemes,” said FBI special agent in charge Joseph R. Bonavolonta. “Every year, health care fraud costs taxpayers billions of dollars. It is not a victimless crime and this unscrupulous scheme orchestrated by DePuy is just one example of how the FBI and our partners are working hard every day to protect both patients and taxpayers.”