On January 18, 2017 the SEC announced in a press release that Orthofix International has agreed to admit wrongdoing and pay a monetary penalty to settle charges "that it improperly booked revenue in certain instances and made improper payments to doctors at government-owned hospitals in Brazil in order to increase sales." According to the SEC: "Orthofix violated the Foreign Corrupt Practices Act (FCPA) when its subsidiary in Brazil schemed to use high discounts and make improper payments through third-party commercial representatives and distributors to induce doctors under government employment to use Orthofix's products. Fake invoices were used for purported services."

On January 18, 2017 the SEC instituted a settled proceeding against Otrhofix International N.V. According to the SEC: "From at least 2011 to mid-2013, Orthofix materially overstated its distributor revenue and operating income in various annual and quarterly reports and earnings releases filed with the Commission."

On January 18, 2017 the SEC instituted a settled proceeding against Orthofix that required Orthofix to pay an $8,250,000 civil money penalty into a Fair Fund that included monies paid in three related cases. On March 31, 2017, the SEC requested for an extension of time to select a fund administrator to develop a plan of distribution. This extension order granted the request ordering the Division to submit a Proposed Plan of Distribution by September 15, 2017.

According to the SEC: "By order dated June 30, 2017, the Commission issued the "Omnibus Order Directing the Appointment of Tax Administrator in Administrative Proceedings that Establish Distribution Funds" ("Omnibus Order"),1 authorizing the Secretary to issue orders beginning June 2017 and for calendar year 2018 appointing, upon request by the Commission staff, Miller Kaplan Arase LLP, a certified public accounting firm, which acquired Damasco & Associates LLP ("Miller Kaplan"), with one of their offices located in Half Moon Bay, California, as tax administrator ("Tax Administrator") in administrative proceedings where the distribution fund may incur tax-related obligations as a Qualified Settlement Fund ("QSF") under the Department of the Treasury Regulation § 1.468B-1(c)."

According to the SEC: "the Division of Enforcement ("Division") has requested a second extension of time until March 15, 2018 to submit a Proposed Plan of Distribution under Rule 1101(a) of the Commission's Rules on Fair Fund and Disgorgement Plans, 17 C.F.R. § 201.1101(a)."

According to the SEC: "ORDERED, that: A. the assets of the Fair Funds created pursuant to the Orders, and any interest accrued on those assets, are consolidated into a single Fair Fund for distribution to harmed investors; B. pursuant to Rule 1105(a) of the Commission's Rules, 17 C.F.R. § 201.1105(a), SCS is appointed as the fund administrator and C. the administrator shall obtain a bond in the amount of $8,370,000.00, in accordance with Rule 1105(c) of the Commission's Rules, 17 C.F.R. § 201.1105(c)."

"Accordingly, for good cause shown, IT IS HEREBY ORDERED that the Division's request for an extension of time until April 30, 2018 to submit a proposed plan of distribution is granted."

The Commission stated that: "The Net Fair Fund is comprised of the $8,370,000.00 in civil money penalties paid by Orthofix, Hammel, McCollum, Mack and McMillan plus accumulated interest and earnings thereon, minus all taxes, fees, and other expenses of distributing the Fair Fund to investors who were harmed by the conduct described in the Orders. The Plan proposes to distribute the Net Fair Fund to investors who purchased eligible securities during the Recovery Period and suffered."

""On January 18, 2017, the Commission issued an Order Instituting Cease-and-Desist Proceedings Pursuant to Section 8A of the Securities Act of 1933 and Section 21C of the Securities Exchange Act of 1934, Making Findings and Imposing Remedial Sanctions and a Cease-and-Desist Order ("Orthofix Order") against Orthofix International N.V. ("Orthofix"). The Orthofix Order required Orthofix to pay an $8,250,000.00 civil money penalty, and created a Fair Fund, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, as amended, so the penalty could be distributed to harmed investors (the "Orthofix Fair Fund")." The SEC approved the Plan of Distribution, pursuant to the Commission's Rules on Fair Fund and Disgorgement Plans, 17 C.F.R. § 201.1104. "

"This Plan of Distribution (the "Plan") has been developed pursuant to Rule 1101 of the Commission's Rules on Fair Fund and Disgorgement Plans ("Rules"), 17 C.F.R. § 201.1101. The Plan provides for a distribution of the funds collected in the above-referenced proceedings from Orthofix International N.V. ("Orthofix"), Jeffrey Hammel, CPA ("Hammel"), Bryan McCollum ("McCollum"), Kenneth Mack ("Mack"), and Brian McMillan ("McMillan") (collectively, the "Respondents") to investors who purchased shares of Orthofix International common stock at inflated prices during the period from March 2, 2010, through August 7, 2013, inclusive ("Recovery Period") and who suffered losses in the value of their investments subsequent to disclosures by the Respondents."

The SEC stated: "[I]t is hereby ORDERED, pursuant to Rule 1105(d) of the Commission's Rules, 17 C.F.R. § 201.1105(d), that OFM pay the Fund Administrator's fees and expenses in the amount of $101,295.06."

The Commission stated: "[I]t is hereby ORDERED that . . . the Commission staff shall transfer $8,450,964.53 from the Fair Fund to the Fair Fund’s escrow account at The Huntington National Bank for distribution by the Fund Administrator to Eligible Investors in accordance with the Plan."

The Commission ordered that: "A. Any funds returned to the Fair Fund in the future shall be transferred to the U.S. Treasury; B. The Fund Administrator, Strategic Claims Services, is discharged; C. The Fund Administrator’s bond is canceled; and D. The Fair Fund is terminated."