CareFusion to Settle False Healthcare Claims for $40M; Whistleblower to Get $3.3M

CareFusion Corp. has agreed to pay $40.1 million to settle allegations that it violated the False Claims Act by paying kickbacks and promoting its products for uses that were not approved by the Food and Drug Administration (FDA), the Justice Department announced today. 

CareFusion, a medical technology company which develops, manufactures, and sells pharmaceutical products (including products sold under the trade name ChloraPrep), allegedly paid $11.6 million in kickbacks to Dr. Charles Denham while Denham served as the co-chair of the Safe Practices Committee at the National Quality Forum, a non-profit organization that reviews, endorses, and recommends standardized health care performance measures and practices. The government contends that the purpose of those payments was to induce Denham to recommend, promote, and arrange for the purchase of ChloraPrep by health care providers. 

This settlement also resolves allegations that CareFusion knowingly promoted the sale of ChloraPrep for uses that were not approved by the FDA, some of which were not medically accepted indications, and made unsubstantiated representations about the appropriate uses of ChloraPrep.

The lawsuit was originally filed by Dr. Cynthia Kirk, a former vice president of regulatory affairs for the Infection Prevention Business Unit of CareFusion, under the whistleblower provisions of the False Claims Act.  The False Claims Act allows private parties with knowledge of fraud against the government to sue on behalf of the government and share in the recovery.  Kirk will receive $3.26 million as her portion of the settlement.

The Chanler Group, in association with the Hirst Law Group, represents whistleblowers who take action under the False Claims Act to report fraud committed against the federal and state governments.  We have years of experience representing whistleblower clients who expose every kind of fraud against the government, including health care fraud, contract fraud, and tax fraud.  Read more about our expertise in False Claims Act cases and how you can take action.