Medical device maker to pay $646 million to settle kickback investigation

To resolve allegations that it paid illegal kickbacks, Olympus Corp. has agreed to pay $623.2 million in criminal penalties and civil claims settlements. In exchange, federal prosecutors will drop criminal charges that Olympus, a distributor of endoscopes and other medical devices, provided research grants, free trips, and other gifts to medical business customers and physicians to help boost its sales.

Federal officials said the settlement is the largest paid by a medical device company in U.S. history for violating the anti-kickback statute. Olympus will also pay $22.8 million to settle allegations it violated the Foreign Corrupt Practices Act in Latin America.

Source: ABC News