Wright Medical Resolves Investigations Into Alleged Kickback Scheme, Agrees to Pay $7.9M

Wright Medical Technology, based in Arlington, Tenn., has agreed to pay $7.9 million to settle allegations that it had engaged in a kickback scheme that induced physicians to use its hip and knee devices, according to Department of Justice news release.

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The lawsuit against Wright stemmed from allegations that between 2002 and 2007 Wright had entered into consulting agreements with various orthopedic surgeons, which were designed and implemented, in part, to induce the surgeons to purchase and use its hip and knee reconstruction and replacement products.

In addition to the $7.9 million payment, Wright has also agreed to be under the review of a federal monitor, who will oversee Wright’s compliance with the terms of the prosecution agreement and all new and existing consulting agreements.

Read the DOJ news release about Wright Medical Technology’s settlement (pdf).

Read other coverage about pharmaceutical company settlements:

Schwarz Pharma to Settle Allegations of False Claims, Will Pay $22M

Pharmaceutical Company AstraZeneca Settles Allegations of Off-Label Marketing and Paying Kickbacks, Pays $520M

New Jersey-Based Pharmaceutical Company to Pay More Than $41M to Settle Allegations of Kickback Violations, Off-Label Marketing

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