[IP] Medtronic stock falls $0.41
Medtronic's stock fell for a second day in a row after this report
Medtronic Says Government Probing Kickback Allegations
September 8, 2003: 2:38 p.m. EST
FRIDLEY, Minn. -- The Justice Department is investigating whether the
spinal- products subsidiary of Medtronic Inc. (MDT) made illegal
kickbacks to doctors, the company said.
The medical-device maker disclosed the investigation in a quarterly
filing with the Securities and Exchange Commission.
According to the filing, the Justice Department informed Medtronic
last week that the government was investigating allegations that
"certain payments and other services" provided by its Medtronic
Sofamor Danek division constituted " improper inducements" under the
federal Anti-Kickback Statute.
The filing on Friday didn't give details about the allegations. The
case remains under seal in federal court in Tennessee, Medtronic
said. Medtronic Sofamor Danek, which Medtronic bought in 1999, is
based in Memphis, Tenn.
Medtronic's filing said the company intends to cooperate with the
investigation. Medtronic spokesman Bob Hanvik didn't immediately
return a phone call seeking comment.
The case was among several Medtronic listed in the quarterly report,
the rest of which were filed earlier. Medtronic said it hadn't
recorded reserves for the suits in its financial statements as of
"We believe that we have meritorious defenses against the above
claims and intend to vigorously contest them," the filing said.
Dow Jones Newswires 09-08-03 1838ET Copyright (C) 2003 Dow Jones &
Company, Inc. All Rights Reserved.
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