Spectranetics says it will make payment and forfeit property to resolve federal investigation

Spectranetics will pay $5M to end federal probe

COLORADO SPRINGS, Colo. — Medical device maker Spectranetics Corp. says it will pay $5 million to end a government investigation into the use and marketing of one of its products, and payments it made to medical personnel.

Spectranetics says the settlement means it will not be prosecuted. The company said it will pay $4.9 million to resolve the investigation, and will forfeit another $100,000 in cash or property in the near future.

In September 2008, the Food and Drug Administration and U.S. Immigration and Customs Enforcement served Spectranetics with a search warrant to get information related to the marketing, use, and testing of one product, and payments to medical personnel, among other issues.

Spectranetics stock jumped to an annual high on the news.