Medtronic to Pay $9.9 Million To Settle False Claims Charge

Medtronic Inc. will pay $9.9 million to resolve allegations under the False Claims Act that the company used various types of payments to induce physicians to implant pacemakers and defibrillators manufactured and sold by Medtronic.

Federal officials alleged that Medtronic caused false claims to be submitted to Medicare and Medicaid by using multiple types of illegal kickbacks to induce physicians to implant Medtronic pacemakers and defibrillators.

Medtronic allegedly induced physicians to use its products by paying implanting physicians to speak at events intended to increase the flow of referral business, developing marketing/business development plans for physicians at no cost, and providing tickets to sporting events.

Medtronic allegedly paid the remuneration to persuade the physicians to continue using Medtronic products or to convert their business from a competitor’s products.

  The settlement announced stems from a whistleblower complaint filed by a former employee of Medtronic, Adolfo Schroeder, pursuant to the qui tam provisions of the False Claims Act, which permit private persons to bring a lawsuit on behalf of the United States and to share in the proceeds of the suit.

Schroeder will receive approximately $1.73 million.

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