California company pays in Memphis kickback case

MEMPHIS, Tenn. (AP) -- Federal prosecutors in Memphis, Tenn., say a California company has agreed to pay the government $2.39 million to resolve allegations it paid kickbacks to physicians.

Prosecutors said in a news release Monday that DFINE Inc. of San Jose tried to induce doctors to use certain company devices used in treating spinal fractures.

Officials said physicians were paid up to $500 per patient to participate in a survey.

The U.S. attorney's office for West Tennessee was involved in the investigation.

DFINE, a privately held medical device company, said in a statement that it fully cooperated with the investigation and continues to deny all of the Department of Justice's "unproven allegations." The company said it admits no wrongdoing, liability or illegal activity.

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