Olympus Corp. of the Americas to Pay $623.2 Million to Settle Kickback Charges
01 Marzo 2016 - 9:20PM
Dow Jones News
Olympus Corp. of the Americas agreed to pay a total of $623.2
million to settle criminal and civil charges that the company won
new business by giving kickbacks to doctors and hospitals,
according to the Justice Department.
The kickbacks helped Olympus, the largest distributor of
endoscopes and related equipment in the U.S., generate more than
$600 million in sales and realize gross profits of more than $230
million, the Justice Department said.
Separately, the company's Latin America subsidiary agreed to pay
$22.8 million to settle charges that it bribed health-care
providers across Central and South America.
Both units of parent company Olympus Corp. also are required to
beef up their compliance training and maintain an effective
compliance program. An independent monitor to evaluate and oversee
compliance with the requirements has been selected and will remain
in place for at least three years.
Olympus, which is known for its cameras, generates the bulk of
its revenue from sales of medical products.
"Olympus leadership acknowledges the company's responsibility
for the past conduct, which does not represent the values of
Olympus or its employees," said Nacho Abia, Chief Executive of
Olympus Corp. of the Americas, in prepared remarks Tuesday.
"Olympus is committed to complying with all laws and regulations
and to adhering to our own rigorous code of conduct."
Mr. Abia also stated that the company "can confirm that the
previous conduct did not adversely affect patient health or patient
care and the investigations and settlements have had no impact on
product or service availability."
According to the Justice Department, Olympus's America business
agreed to pay a criminal penalty of $312.4 million. It also agreed
to pay a $310.8 million settlement to the federal government and
the states to resolve claims that Olympus's kickbacks results in
false claims to the Medicare, Medicaid and the Tricare health
program for the military.
The Justice Department said the criminal complaint addressed
kickbacks to doctors and hospitals that included consulting
payments, foreign travel, lavish meals and millions of dollars in
grants and free endoscopes.
Write to Tess Stynes at tess.stynes@wsj.com
(END) Dow Jones Newswires
March 01, 2016 15:05 ET (20:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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