Baxano Surgical, Inc. Announces Definitive Settlement With Office of Inspector General (press release)
Baxano Surgical, Inc. (Nasdaq:BAXS), a medical device company focused on designing, developing and marketing minimally invasive products to treat degenerative conditions of the spine affecting the lumbar region, today announced that it has reached a definitive agreement with the U.S. Department of Justice related to the subpoena issued in October 2011.
On December 24, 2012, the Company and the staff of the Department of Justice tentatively agreed to settle its federal investigation for $6 million, subject to completion and approval of written settlement agreements with the Department of Justice and the Office of Inspector General of the Department of Health and Human Services (OIG-HHS). The Company accrued $6 million to account for this settlement in the quarter ended December 31, 2012.
The final agreement related to the settlement of $6 million has now been executed. The $6 million settlement, plus accrued interest of 2%, will be paid in nine quarterly installments beginning in July 2013. The Company admits no wrongdoing as part of the settlement.
As part of the settlement, Baxan...
