Corporate Compliance

Medical device company pays $16 million to resolve kickback charges

Compliance Monitor, January 26, 2011

St. Jude Medical Inc. agreed to pay the United States $16 million to resolve allegations that the company paid kickbacks to induce physicians to implant the company’s pacemakers and defibrillators, according to a Department of Justice (DOJ) press release.

The DOJ alleges that St. Jude solicited physicians for the studies in order to retain their business and/or convert their business from a competitor’s product. In each case, St. Jude paid each participating physician a fee that ranged up to $2,000 per patient.

Charles Donigian filed the case against St. Jude via the qui tam provision of the False Claims Act. Donigian will receive $2.64 million for his efforts.

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