News In Brief

A trial date has been set for March 11, 2013, in a federal suit against Orthofix Inc., following a judge's rejection of a settlement that had been inked between the bone-growth-stimulator maker and federal attorneys. Orthofix had agreed to pay a $7.8 million fine to settle a guilty plea on the felony count of obstructing a federal audit, but Massachusetts U.S. District Court Judge William G. Young rebuffed the deal, the Massachusetts U.S. Attorney’s office confirmed. The action also may have implications for a $34.2 million civil settlement tied to the same investigation. Federal attorneys say Orthofix engaged in kickbacks and other fraudulent activities in effort to sell and secure reimbursement for its devices. (See Also see "Judge Weighs $42 Million Orthofix Settlement With Feds" - Medtech Insight, 30 July, 2012..) “The company and the government stand behind their agreements and continue to discuss a resolution of the matter following the court’s rejection of the plea,” Orthofix CEO Robert Vaters said.