Life Spine to pay nearly $6M to settle kickback lawsuit

Life Spine, a Huntley, Ill.-based medical devicemaker, agreed to pay nearly $6 million to settle a federal lawsuit alleging two of its executives paid physicians kickbacks to encourage them to use the company's products. 

The lawsuit alleged Life Spine's Founder and CEO Michael Butler and  Vice President of Business Development Richard Greiber violated the False Claims Act by paying millions in consulting fees, royalties and intellectual property acquisition fees to surgeons to boost sales. 

About half of Life Spine's total domestic sales of spinal products from 2012 to 2018 were a result of kickbacks, prosecutors claimed. 

Under the settlement, which was reached with the U.S. Court for the Southern District of New York, Life Spine will pay $5.5 million, Mr. Butler will pay $375,000 and Mr. Greiber will pay $115,000.

The two executives also acknowledged and accepted responsibility for the conduct. 

Read the full news release here

For more information, visit the Life Spine facts page here.

More articles on legal and regulatory issues:
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