---
title: "The 2010 deferred prosecution agreement"
language: en
canonical: https://dossiertwist.com/dossiers/exactech/deferred-prosecution-2010/
as_of: 2026-10-16
keywords: ["Exactech","TPG","Osteon Holdings","TPG VII Osteon Holdings","Advita Ortho","Exactech Settlement Trust","polyethylene recall","Connexion GXL","Optetrak","Truliant","Equinoxe","vacuum bag packaging","EVOH","MDL No. 3044","Hospital for Special Surgery","Chapter 11","False Claims Act","Strategic Value Partners","William Petty","Jeffrey Binder"]
---

# The 2010 deferred prosecution agreement

**Question.** What did federal prosecutors charge Exactech with in 2010, and how was it resolved?

**Answer.** In December 2010 federal prosecutors in New Jersey charged Exactech with conspiring to violate the anti-kickback statute through consulting agreements meant in part to induce surgeons to use its hip and knee products from 2002 to 2008. Exactech entered a deferred prosecution agreement with a federal monitor, paid $2.99 million to settle related civil claims and accepted a five-year corporate integrity agreement; its former Northeast sales director pleaded guilty. The Settlement Trust alleges that similar consulting payments continued after the agreement expired.

## The agreement and the charge

- Analysis: On December 7, 2010 the U.S. Attorney's Office for the District of New Jersey announced that Exactech, Inc. had entered a deferred prosecution agreement with a federal monitor. A criminal complaint charged the company with conspiring to violate the federal anti-kickback statute, alleging that from 2002 through late 2008 it entered consulting agreements with orthopaedic surgeons designed in part to induce them to use its hip and knee products. The complaint was to be dismissed after 12 months if Exactech met the agreement's requirements; the retained records do not show that step. Under the agreement Exactech undertook further remediation and to acknowledge responsibility for its behaviour, and the prosecutors acknowledged that neither the agreement nor the complaint alleged that its conduct adversely affected patient health or care. A certified board resolution authorised outside counsel from Greenberg Traurig to sign it. [src-080] [src-111]
- Analysis: Alongside it Exactech agreed to pay $2.99 million to settle civil False Claims Act claims with the Department of Justice and HHS's Office of Inspector General that its marketing practices had caused false claims to Medicare, and entered a five-year corporate integrity agreement. The company's then director of sales for its Northeast region pleaded guilty to conspiring to violate the anti-kickback statute. [src-080]

## The trust’s account of later consulting payments

- Analysis: The Settlement Trust's 2026 complaint alleges that similar consulting arrangements continued after the agreement expired and that from 2017 to 2023 Exactech paid physicians nearly $60 million, including more than $16 million in consulting fees. These are allegations in a pending case; no ruling on them is in the retained record. [src-012]

## Sources

- [src-080] Regulatory record source · src-080
- [src-111] Court record source · src-111
- [src-012] Court record source · src-012