Wright Medical settles
This article was originally published in The Gray Sheet
Executive Summary
Orthopedic device maker Wright Medical enters into deferred prosecution agreement with the U.S Attorney's Office for the District of New Jersey and will pay $7.9 million under a civil settlement with the U.S. government to resolve a federal investigation into alleged improper consulting and professional service agreements with orthopaedic surgeons. Under the settlement, announced Sept. 30, the U.S. Attorney's Office won't prosecute so long as Wright Medical completes certain obligations over the next 12 months. In conjunction with the civil settlement, the firm also has entered into a five-year corporate integrity agreement with the HHS Office of Inspector General. Wright set aside $8 million for a settlement earlier this year. Other major ortho firms previously have settled or otherwise resolved similar charges (1"The Gray Sheet" May 10, 2010)