Spine device manufacturer Innovasis and two of its senior executives have agreed to pay $12 million to resolve false claim act allegations.
The company and senior executives Brent Felix and Garth Felix allegedly paid kickbacks to spine surgeons who agreed to use Innovasis' spinal devices, according to a May 29 news release from the Justice Department.
Brent Felix is the founder, president and chairman of the board of Innovasis while Garth Felix has held several leadership positions, including CFO.
Between Jan. 1, 2014, and Dec. 31, 2022, the company allegedly provided payments to 17 orthopedic and neurosurgeons to use Innovasis spinal implants, devices and other equipment in medical procedures the physicians performed on Medicare beneficiaries.
Innovasis allegedly provided surgeons with consulting fees, intellectual property acquisition and licensing fees, registry payments and performance shares in Innovasis, as well as travel to a luxury ski resort, dinners and holiday parties for surgeons and their staffers and family members.
Innovasis former Regional Sales Director Robert Richardson brought forward whistleblower claims against the company. He will receive approximately $2.2 million as his share of the settlement.