Medical Device Company Settles with Seven States Over Alleged Kickbacks and False Claims

  • Medical device company Medicrea USA, Inc. and its corporate parent Medicrea International (collectively, “Medicrea”) settled with California, Colorado, Florida, Georgia, North Carolina, New York, and Texas, and the U.S. Department of Justice (“DOJ”), over allegations that it paid kickbacks to physicians in violation of the federal Open Payment Program, Anti-Kickback Statute, and state false claims laws.
  • According to California AG Bonta’s office and the DOJ, Medicrea allegedly paid physicians through travel expenses, meals, beverages, and entertainment, to induce them to use Medicrea medical devices in surgical procedures to treat spinal disorders; received reimbursements for those expenses from state and federal healthcare programs; and failed to report those expenses to the Centers for Medicare & Medicaid Services.
  • Under the terms of the state and federal settlements, Medicrea will pay $1 million to the states, and $1 million to the United States.