Medtronic Settles Whistleblower Lawsuit
On May 28, 2014, the U.S. Department of Justice announced the settlement of a qui tam (“whistleblower”) lawsuit against Medtronic, Inc. over allegations that the medical device company improperly paid doctors to implant the company’s pacemakers and defibrillators. The settlement brings to an end a case initially brought forth five years ago by a former Medtronic employee. According to the lawsuit, Medtronic induced physicians to use its products by paying them to speak at events, providing them tickets to sporting events, and developing marketing plans for them at no charge. Such improper financial incentives to physicians have been targeted by federal regulators because they have the potential to compromise independent physician medical judgment.
The case was resolved with Medtronic agreeing to pay $9.98 million in settlement. The former Medtronic employee who brought the improper payments to light as the whistleblower will receive $1.7 million of the settlement proceeds under the whistleblower provision of the federal False Claims Act.
The federal False Claims Act and the North Carolina False Claims Act are important vehicles for combating financial fraud and ensuring patient safety. Persons with knowledge of improper actions which defraud either the state or federal government should contact an attorney experienced in handling whistleblower cases.Share This
The law firm you choose makes a difference. If you are the victim of an accident or an illness that someone else caused, the North Carolina personal injury law firm of Martin & Jones has the depth of experience, skills and sensitivity to make your road to recovery as smooth as possible. Whether you have experience with the legal system or have never hired a medical malpractice or personal injury lawyer before, our attorneys and staff will do our best to answer your questions, provide clear advice and prepare you and your family for what to expect. If you would like more information or to meet with one of our attorneys, please fill out the form below or call us at 800.662.1234.