Defendant Name: Orthofix International N.V.

Defendant Type: Public Company
SIC Code: 3840
CUSIP: N6748L10

Initial Case Details

Legal Case Name In the Matter of Orthofix International N.V.
First Document Date 18-Jan-2017
Initial Filing Format Administrative Action
File Number 3-17791
Allegation Type Issuer Reporting and Disclosure
AAER 3845

Violations Alleged

Exchange Act
Rule 12b-20
Sec 13(a)
Rule 13a-1
Rule 13a-11
Rule 13a-13
Sec 13(b)(2)(A)
Sec 13(b)(2)(B)
Securities Act
Sec 17(a)(2)
Sec 17(a)(3)


First Resolution Date 18-Jan-2017
Headline Total Penalty and Disgorgement

See Related Documents

Related Documents:

2017-18_3-17791 18-Jan-2017 Press Release--Administrative Proceeding
Medical Device Company Charged With Accounting Failures and FCPA Violations
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."
33-10281 18-Jan-2017 Administrative Proceeding
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 a Cease-and-Desist Order
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."
34-80353 31-Mar-2017 Administrative Proceeding
Extension Order
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.
34-81257 31-Jul-2017 Administrative Proceeding
Order Appointing Tax Administrator
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)."
34-81620 14-Sep-2017 Administrative Proceeding
Second Extension Order
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)."
34-82410 27-Dec-2017 Administrative Proceeding
Order Consolidating Fair Funds, Appointing Fund Administrator, and Setting Administrator Bond Amount
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)."
34-82933 22-Mar-2018 Administrative Proceeding
Third Extension Order
"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."
34-83133 30-Apr-2018 Administrative Proceeding
Notice of Proposed Plan of Distribution and Opportunity for Comment
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."
34-83497 22-Jun-2018 Administrative Proceeding
Order Approving Plan of Distribution
""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. "
34-83497-dp 22-Jun-2018 Administrative Proceeding
Plan of Distribution
"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."
34-86100 13-Jun-2019 Administrative Proceeding
Order Approving Application of Fund Administrator for Payment of Fees and Expenses and Approval of Future Fees and Expenses
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."
34-89223 06-Jul-2020 Administrative Proceeding
Order Directing Disbursement of Fair Fund
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."
34-96737 23-Jan-2023 Administrative Proceeding
Order Authorizing the Transfer to the U.S. Treasury of Any Funds Returned to the Fair Fund in the Future, Discharging the Fund Administrator, Cancelling the Administrator's Bond, and Terminating the Fair Fund
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."

Related Actions:

In the Matter of Jeffrey Hammel, CPA
In the Matter of Brian McCollum
In the Matter of Kenneth Mack and Bryan McMillan