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Foothill Ranch Company Pays $500K to Settle Trouble with the Feds

Ossur Americas claimed its prosthetic-support products sold to the U.S. Army were made in America when some were not.

Ossur Americas of Foothills Ranch paid the U.S. government $500,000 today. Patch file photo.
Ossur Americas of Foothills Ranch paid the U.S. government $500,000 today. Patch file photo.

A Foothill Ranch-based company that makes prosthetic-support products paid the U.S. government $500,000 today for saying its products were made in the states when some of them were actually foreign-made, the U.S. Attorney’s office announced today.

Ossur Americas made the payment to settle allegations federal prosecutors brought that company officials falsely claimed they were in compliance with the Buy American Act.

“The Buy American Act generally prohibits federal government agencies from purchasing foreign-made products, and Ossur’s compliance with the Act was expressly required by its contracts with the Army,” says a press release from the U.S. Attorney’s office.

 

Shripathi Kamath March 26, 2014 at 11:04 PM
Rather difficult to figure out what the actual extent of the violation was. If say 10 were made in Haiti instead of in OC, then $500,000 may be too steep if there were no adverse effects. But if 45% of all made were made in Haiti, or if people suffered because of poor quality, then $500,000 might be too light a fine. Someday we'll see more judges rejecting such settlements until more details are made public and criminal wrongdoing if any is not brushed under the rug. Settlements are a lot worse in the financial sector.

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