04:05 PM EDT, 07/18/2024 (MT Newswires) -- DaVita (DVA) agreed to pay about $34.5 million to settle allegations of paying kickbacks to induce referrals, the US Attorney's Office for the District of Colorado said Thursday.

The company allegedly paid kickbacks to a competitor to induce referrals for its former unit DaVita Rx to serve as a prescription fulfillment provider. DaVita is also said to have acquired certain European dialysis clinics at inflated prices in exchange for prescription referrals, according to the press release.

The US Attorney's Office further alleges that DaVita provided management services to physician-owned centers and paid improper remuneration to induce referrals to its dialysis clinics.

DaVita Kidney Care's former chief operating officer Dennis Kogod will receive about $6.4 million from the proceeds of the settlement for his role as a whistleblower.

DaVita did not immediately respond to MT Newswires' request for comment.

Shares of the company were down 2% in recent trading.

Price: 136.77, Change: -2.91, Percent Change: -2.08