Judge nixes $42M Orthofix, Justice Dept. settlement
A federal judge in Massachusetts rejects a proposed settlement between Orthofix International and the U.S. Justice Dept. over charges that it illegally promoted its bone-growth stimulators.
A federal judge in Boston yesterday put the kaibosh oin a $42 settlement deal between Orthofix (NSDQ:OFIX) and the U.S. Justice Dept. over charges that the medical device company illegally promoted its bone-growth stimulators.
Judge William Young of the U.S. District Court for Massachusetts rejected the proposed deal during a hearing yesterday, saying the agreement would limit his ability to impose further penalties, according to Bloomberg BusinessWeek.
"It seems in this case the court’s hands ought not be tied," Young said, according to the website. "I have extreme unease of treating corporate criminal conduct like a civil case."