California Device Manufacturer Settles Anti-Kickback Claims

DFine, a California provider of vertebral augmentation devices, agreed to resolve Justice Department allegations of false claims for $2.9 million.  The government charged DFine with using customer surveys as vehicles to pay participating physicians kickbacks to induce them to use DFine devices.  The government alleged that DFine paid $500 to a physician who provided product information, which was coupled with the sale of a new device to the physician’s patient.  All of the payments were alleged to be in violation of the federal Anti-kickback statute.  The government claims were based on the complaint of a whistleblower who received $250,000 for reporting the alleged conduct.  As part of the settlement, DFine will enter into a corporate integrity agreement with the government to avoid similar conduct in the future.

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