C.R. Bard to Pay $48.26M Settlement; Whistleblower to Get $10M

New Jersey-based C.R. Bard has agreed to pay the U.S. government $48.26 million to resolve allegations that it knowingly caused false claims to be submitted to Medicare for brachytherapy seeds used to treat prostate cancer, the U.S. Department of Justice announced this week.

The United States alleged that from 1998 to 2006, Bard violated the Anti-Kickback Statute when the company provided illegal remuneration to customers and physicians to induce them to purchase Bard’s seeds, in the form of certain grants, guaranteed minimum rebates, conference fees, marketing assistance and/or free medical equipment.  Hospitals ultimately submitted bills to Medicare for these seeds, which the government alleged were rendered false by Bard’s illegal kickback activity. The government alleged that Bard was liable under the False Claims Act for causing the submission of those false claims.

The lawsuit was filed by Julie Darity, a former Bard manager for brachytherapy contracts administration, under the whistleblower provisions of the False Claims Act.  The False Claims Act allows private citizens with knowledge of fraud to sue on behalf of the government and share in the recovery.  Darity will receive a little over $10 million as her share of the civil 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.