Olympus Corp. of the Americas to Pay $623.2 Million to Settle Kickback Charges

Olympus Corp. of the Americas agreed to pay a total of $623.2 million to settle criminal and civil charges that the company won new business by giving kickbacks to doctors and hospitals, according to the Justice Department.

The kickbacks helped Olympus, the largest distributor of endoscopes and related equipment in the U.S., generate more than $600 million in sales and realize gross profits of more than $230 million, the Justice Department said.

Separately, the company's Latin America subsidiary agreed to pay $22.8 million to settle charges that it bribed health-care providers across Central and South America.

Both units of parent company Olympus Corp. also are required to beef up their compliance training and maintain an effective compliance program. An independent monitor to evaluate and oversee compliance with the requirements has been selected and will remain in place for at least three years.

Olympus, which is known for its cameras, generates the bulk of its revenue from sales of medical products.

"Olympus leadership acknowledges the company's responsibility for the past conduct, which does not represent the values of Olympus or its employees," said Nacho Abia, Chief Executive of Olympus Corp. of the Americas, in prepared remarks Tuesday. "Olympus is committed to complying with all laws and regulations and to adhering to our own rigorous code of conduct."

Mr. Abia also stated that the company "can confirm that the previous conduct did not adversely affect patient health or patient care and the investigations and settlements have had no impact on product or service availability."

According to the Justice Department, Olympus's America business agreed to pay a criminal penalty of $312.4 million. It also agreed to pay a $310.8 million settlement to the federal government and the states to resolve claims that Olympus's kickbacks results in false claims to the Medicare, Medicaid and the Tricare health program for the military.

The Justice Department said the criminal complaint addressed kickbacks to doctors and hospitals that included consulting payments, foreign travel, lavish meals and millions of dollars in grants and free endoscopes.

Write to Tess Stynes at tess.stynes@wsj.com

(END) Dow Jones Newswires

March 01, 2016 15:05 ET (20:05 GMT)

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