Orthofix Agrees to Pay $5.2M to Settle Bribery Allegations

Medical device giant Orthofix International has agreed to pay $5.2 million to settle allegations that it bribed Mexican government officials in order to close sales contracts with government-owned hospitals, according to a Wall Street Journal report.

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The Securities and Exchange Commission has accused Orthofix’s subsidiary of paying the government-run Instituto Mexicano del Seguro Social with “chocolates,” including cash, laptop computers and televisions, in exchange for sales contracts with hospitals. The bribes turned an estimated $5 million in illegal profits for Orthofix, the SEC said.

According to the report, Orthofix was internally alerted to the bribery scheme, self-reported the scheme to the SEC and fired the executives involved with the plot.

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