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Medtronic settles kickback allegations for $40 million

The U.S. Dept. of Justice announced that Medtronic’s Sofamor Danek Division will pay $40 million to settle allegations that it violated the Anti-Kickback Statute and the False Claims Act.

The suit, which began as a qui tam action filed by a whistleblower, alleged that Medtronic paid kickbacks to physicians in a number of forms to induce them to use the company’s spinal implant devices.

The Jutsice Department’s press release is available at their website. The New York Times (subscription required) carried a story in their July 19, 2006 issue.

For additional background on the suit, see the January 31, 2006 entry at www.quitam.blogspot.com.

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