Medtronic Settles Whistleblower Claims for $2.8M

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Medtronic will pay $2.8 million to settle allegations that the company improperly solicited Medicaid patients over insulin infusion pumps. Legal Newsline reports that on Monday, Pennsylvania Attorney General Kathleen Kane announced that her office jointed the multi-state and federal settlement; 36 states were involved in the settlement.

Former Medtronic employees sued the company in the U.S. District Court for the Northern District of Texas in 2011 under the False Claims Act. They alleged that the device maker directly solicited Medicaid recipients to replace their insulin infusion pumps, violating a federal Anti-Solicitation Rule and similar state laws. The claims for these pumps were therefore submitted to Medicaid programs improperly, the whistleblowers alleged.

Under the settlement, Medtronic will pay $327,000 to settle Medicaid-based claims across the country. Pennsylvania will receive over $13,000 from the settlement.

The settlement negotiations were conducted by The National Association of Medicaid Fraud Control Units (NAMFCU) on behalf of the states, and included representatives from the offices of attorneys general for the states of Virginia, Texas, Oregon, Ohio Indiana and California.