DePuy Synthes

DePuy Synthes, part of medical devices the corporation's sector and equipment, Johnson&Johnson offers an orthopaedic portfolio in the world. Solutions in specialties such as large joint endoprosthesis, trauma, maxillofacial surgery, spinal surgery and, sports medicine aim to improve patient care and bring clinical and economic value to systems health care worldwide.

History

2023

How a Johnson & Johnson top executive stole hundreds of thousands of dollars worth of spinal products from a hospital

On June 26, 2023, the US Department of Justice announced the arrest of former sales representative and group leader DePuy Synthes (acquired by Johnson & Johnson in 1998) Matthew Capobianco. According to investigators, the suspect robbed an unnamed hospital in Boston, causing hundreds of thousands of dollars in damage .

45-year-old Capobianco reportedly carried out fraudulent activities from January 2016 to June 2017. He, in particular, falsified medical records, indicating that during operations on the spine, more expensive Johnson & Johnson DePuy products were used than they really were. In addition, Capobianco overestimated the number of products used. As a result, the hospital paid for spinal implants that were not actually delivered. This gave the fraudster the opportunity to increase his monetary rewards. The man later gave false testimony to the federal authorities investigating his activities.

U.S. Justice Department says arrest of former trade representative and DePuy Synthes group leader

In addition, according to the case file, at the end of 2016, Capobianco instructed a subordinate DePuy sales representative to deliver certain products to operating hospitals without their preliminary sterilization. Later, he himself put implants in the medical institution that pose a threat to patients. Hospital staff found non-sterile products on time, and the fraudster was forbidden to enter the medical institution.

Capobianco faces charges of wire fraud and making substantial false statements. Under the first paragraph, he faces a sentence of imprisonment for up to 20 years and a fine of $250 thousand. The charge of giving false testimony provides for punishment in the form of imprisonment for up to five years and monetary recovery of up to $250 thousand.^[1]

Fine of $9.75 million on charges of kickbacks to doctors

At the end of January 2023, the manufacturer of orthopedic and neurosurgical solutions DePuy Synthes, which is a subsidiary of Johnson & Johnson, agreed to pay $9.75 million to settle the charges. DePuy Synthes is accused of kickbacks in the form of free spinal implants and instruments for surgery performed by an orthopedic surgeon.

As part of the settlement, DePuy Synthes acknowledged that the company provided various surgical instruments free of charge to a Massachusetts surgeon between July 2013 and February 2018. Transferred products in the amount of more than $100 thousand to the surgeon so that he can conduct operations abroad to various patients who are not beneficiaries of the federal. health care USA The goal was to encourage the surgeon to use DePuy Synthes products in operations performed in the United States.

Orthopedic and neurosurgical solutions maker DePuy Synthes agrees to pay $9.75 million to settle charges

The False Claims Act and the Anti-Cat Statute (AKS) prohibits offering, paying, claiming or receiving rewards for inducing referral of items or services covered by Medicare and other programs funded by the U.S. federal budget to ensure that treatment decisions are made in the best interests of the patient. The lawsuit was filed by Alexei Gusakov, a former sales representative for DePuy Synthes, under a provision of the common law concept that allows individuals to sue on behalf of the United States in exchange for a portion of the indemnity.

Of the total amount, approximately $7.23 million will be returned to the US federal government. Approximately $2.52 million will be paid to the state of Massachusetts, which jointly funded claims for operations conducted using DePuy Synthes devices and filed with Massachusetts Medicaid. Alexey Gusakov will receive approximately $1.37 million.^[2]

2022

$20 million fine for stealing knee prosthetics technology

In mid-March 2022, the United States Federal Jury issued a verdict for DePuy Synthes in the amount of $20 million in favor of the surgeon. A medical professional claimed in 2021 that Johnson & Johnson's orthopaedic division had stolen his patented technology.

Surgeon Gary Lynn Rasmussen, invented a device to align and position the prosthesis in a knee replacement, according to court documents. Rasmussen applied for patent protection and over the following years offered a DePuy Synthes device, including a demo, but could not convince it to license the technology.

Johnson and Johnson to pay $20m to steal knee prosthetics technology

Depending on the degree of damage to the joint, as well as the age and nature of the patient's vital activity, the primary prosthetics of the knee joint may be total or partial. Partial prosthetics are more easily tolerated by the patient because they do not involve significant loss of their own tissue. Single-heel prosthetics provide for the preservation of a significant part of bone, but places great demands on the quality of bone tissue.

In 2020, Rasmussen, whose interests were represented by Fish & Richardson lawyers, filed a lawsuit, saying that DePuy Synthes' Attune Knee System includes a product called Balanced Sizer to adjust the tension of the ligaments in the knee joint for positioning and installing the prosthesis, which is a violation of Rasmussen patents. DePuy Synthes, which was represented by lawyers from Jones Day, denied it was wrong.

After the trial, the jury on March 14, 2022, they concluded that DePuy Synthes deliberately violated one of the two patents with its Balanced Sizer product, and stated that $20 million would be adequate compensation to the surgeon. Case# 1:20-CV-11807-WGY is pending in the U.S. District Court for the Eastern District of Massachusetts. Lawyers at Jones Day said they did not agree with the conclusions of the US jury regarding Balanced Sizer and Balancing Blocks, the company will appeal to the trial court for post-trial assistance and, if necessary, appeal.^[3]

Purchase of lower limb implant developer CrossRoads Extremity Systems

In mid-February 2022, DePuy Synthes, a subsidiary of Johnson & Johnson, announced the acquisition of CrossRoads Extremity Systems. The financial terms of the deal were not disclosed. Read more here.

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