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Federal Contractor Misconduct Database (FCMD)

The federal government routinely awards contracts to companies with histories of misconduct, including contract fraud and other violations. POGO believes that providing this website will help to improve contracting decisions and increase public knowledge of how the government spends billions of taxpayer dollars each year. Read more…

Offering Financial Inducements to Use Hip and Knee Implants – Criminal/Civil Settlement

Five companies, including Johnson & Johnson subsidiary Depuy Orthopaedics, entered into 18-month deferred prosecution agreements with the U.S. government to resolve charges of paying financial inducements to surgeons to use their hip and knee surgical implants. The government alleged that, from at least 2002 through 2006, the companies used consulting agreements with orthopedic surgeons as inducements to use their artificial hip and knee reconstruction and replacement products. Surgeons who had agreements with the companies were typically paid tens to hundreds of thousands of dollars per year for consulting contracts and were often lavished with trips and other expensive perquisites. Additionally, Depuy paid $84.7 million to settle civil claims under the anti-kickback statute and the False Claims Act. Depuy also entered into a five-year corporate integrity agreement with the Department of Health and Human Services Office of Inspector General requiring additional reforms and monitoring.

Misconduct Type
Health
Enforcement Agency
Multiple Agencies
Contracting Party
None
Court Type
N/A
Disposition
Settlement
Date of Settlement Announcement
9/27/2007
Contractors Involved Penalty
Total
Johnson & Johnson $84,700,000
Further Information Released
DOJ Press Release 9/27/2007

Federal Contractor Misconduct Database