Boston's U.S. District Judge William Young has rejected Orthofix's settlement in a Medicare fraud case, according to a
Bloomberg Businessweek report.
The case stems from a 2005 whistleblower suit alleging Orthofix improperly waived patients' co-payments and misrepresented the true cost to federal programs, resulting in overpayments. The suit also claims the company paid kickbacks to physicians and staff members to induce the use of Orthofix products and failed to inform patients they could rent rather than purchase products.
Orthofix agreed to pay the United States $34 million along with a criminal fine of roughly $7.8 million to resolve the case.
Judge Young rejected the $7.8 million fine, though it is unclear whether the plea rejection will include the federal penalty. Orthofix did not comment on Judge Young's decision.
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