UPDATE 2-Orthofix to pay $5.2 million to settle bribery charges

* SEC alleged company's Mexican unit bribed government
officials
* Charges include exchanging cash, laptops, TVs for hospital
contracts
* Shares little changed in afternoon trading

July 10 (Reuters) - Medical device maker Orthofix
International NV will pay $5.2 million to settle
charges that its Mexican subsidiary paid bribes to government
officials to obtain sales contracts with hospitals, the U.S.
Securities and Exchange Commission said.
The SEC alleged the company's Promeca subsidiary regularly
paid bribes, referred to as "chocolates," in the form of cash,
laptop computers, televisions and appliances in a scheme that
yielded nearly $5 million in illegal profits over a period of
seven years.
The company, which makes spinal and orthopedic products,
spent more than $300,000 to sweeten deals with Mexican officials
from 2003 to 2010, the agency said.
There was no immediate comment from Mexican authorities.
Promeca falsely recorded the bribes as cash advances and
falsified invoices or recorded them as promotional and training
costs, according to the SEC's complaint, filed in U.S. District
Court for the Eastern District of Texas. The proposed settlement
is subject to court approval.
The company has fired the Promeca executives who
orchestrated the bribery scheme, the SEC said.
An Orthofix spokesman could not immediately be reached for
comment.
Orthofix also disclosed in a U.S. regulatory filing that it
has reached an agreement with the Department of Justice to pay a
$2.22 million penalty in a related action.
In a separate case, the company in June said it would pay
about $34 million to settle a probe into the marketing of its
bone growth stimulation products.
Shares of Orthofix fell 15 cents, or less than 1 percent, to
$41.00 in afternoon trading on Nasdaq.