SACRAMENTO, Calif.–(BUSINESS WIRE)–July 28, 2022–
Cutter Law PC announces that the international medical device company, Biotronik, Inc., agreed to pay more than $12.95 million in the United States and various states to resolve allegations that Biotronik illegally bribed doctors. The case, United States ex rel. Bell et al. vs. Biotronik, Inc. et al., case no. 18-cv-01391, was brought by two former Biotronik employees and Cutter Law PC client whistleblowers. Biotronik will pay settlement funds to the United States and various state Medicaid programs, and will pay the California Department of Insurance $855,000 for misrepresentations made to private insurers in California under a separate agreement.
“This settlement represents an exceptional outcome for the government and for my clients, and proof that the False Claims Act is an essential tool to control companies like Biotronik and to combat and punish corporate healthcare fraud,” said the lawyer. John R. Parker, Jr.who served as lead counsel for whistleblowers while this case has been pending for more than four years.
In 2017, clients of Mr. Parker, who at the time both worked for Biotronik, disclosed in the United States that they believed Biotronik improperly paid bribes to doctors implanting Biotronik devices in order to encouraging them to implant Biotronik’s cardiac rhythm management products and discouraging preventing them from prescribing the products of Biotronik’s competitors. Biotronik has deliberately provided substantial monetary and non-monetary compensation to some of its most prominent implant doctors.
Subsequently, in March 2018, Cutter Law PC filed a lawsuit in the United States District Court for the Central District of California on behalf of these whistleblowers under the Federal False Claims Act. and acts of false claims from several states. The Federal Misrepresentation Act and several state laws allow people to file who tam claims on behalf of federal or state governments when they become aware of schemes to defraud them.
One of the main schemes alleged by the connections was that Biotronik paid implant doctors $400 per procedure to “train” Biotronik employees in the operating room. But these trained employees would be “trained” up to 100 times; essentially, the sole job of these Biotronik employees was to be in the room during a procedure so that an implanter doctor would receive an additional $400 each time the doctor implanted a Biotronik device. With implant doctors performing as many or 10 or more implants per day, Biotronik was assured that the doctors it paid would remain loyal implant doctors.
The United States filed its Notice of Intervention in the case in 2021 after a lengthy and detailed investigation into Biotronik and its practices that confirmed the whistleblowers’ claims. A settlement was then negotiated to resolve the claims of the United States and several states in exchange for a payment of $12.95 million by Biotronik. The California Department of Insurance will receive a separate payment of $855,000.
As a result of the announced settlement, whistleblowers will receive a $2.6 million share of the federal and state portion of the recovery and half of the recovery from the California Department of Insurance. Biotronik will also pay $500,000 in costs and attorney fees and a total of $750,000 to resolve the relationships’ individual employment claims. Whistleblowers were represented in the False Claims Act lawsuit by John R. Parker, Jr. and his partner stream cutter, founding member of Cutter Law PC. Cutter Law PC is a complex civil litigation firm in Sacramento and the Bay Area. Mr. Parker and Mr. Cutter specialize in representing who tam whistleblowersas well as other plaintiffs in cases of individuals who have been harmed by the wrongdoings of insurance companies, pharmaceutical companies, medical device companies, manufacturers, multinational corporations and employers.
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CONTACT: John R. Parker, Jr.
Cutter Law PC
KEYWORD: CALIFORNIA UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: PROFESSIONAL SERVICES LEGAL HEALTH MEDICAL DEVICES
SOURCE: Cutter Law PC
Copyright BusinessWire 2022.
PUBLISHED: 7/28/2022 2:48 PM / DISK: 7/28/2022 2:48 PM
Copyright BusinessWire 2022.