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HomeFocus → DOJ Intervenes in FCA Lawsuit Filed Against Medical Device Maker

DOJ Intervenes in FCA Lawsuit Filed Against Medical Device Maker Print E-mail
Written by Vitale Health Law   
Tuesday, 06 August 2019 15:44

The U.S. Department of Justice has intervened in a whistleblower lawsuit filed against medical device maker Life Spine Inc., along with the company's founder and its VP for Business Development. The lawsuit alleges that the company paid millions of dollars in kickbacks to surgeons in exchange for using its spinal implants, equipment and other devices. It's alleged the surgeons who received these payments accounted for approximately half of Life Spine's total domestic sales of spinal products from 2012 through 2018. The original qui tam lawsuit was filed under seal in 2018 by BNHT LLC under the False Claims Act. The Relators were identified as four former Life Spine employees. The False Claims Act allows those who discover fraud to sue on behalf of the government. The government can choose to intervene, as it did in this case, or allow the case to move forward privately. The Relators, in turn, can receive a percentage of what is recovered.
 


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