Medtronic to Pay $9.9 Million to Resolve False Claims Act Allegations; Whistleblower to Receive $1.73 Million

Medtronic Inc. has agreed to pay the United States $9.9 million to resolve allegations under the False Claims Act that the company used various types of payments to induce physicians to implant pacemakers and defibrillators manufactured and sold by Medtronic, the Department of Justice announced late last month.  Medtronic manufactures and sells medical products and is headquartered in Minnesota. 

The United States alleges that Medtronic caused false claims to be submitted to Medicare and Medicaid by using multiple types of illegal kickbacks to induce physicians to implant Medtronic pacemakers and defibrillators.  Specifically, Medtronic allegedly induced physicians to use its products by: 1) paying implanting physicians to speak at events intended to increase the flow of referral business; 2) developing marketing and business development plans for physicians at no cost; and 3) providing tickets to sporting events. 

The settlement originally stemmed from a whistleblower complaint filed by a former employee of Medtronic, Adolfo Schroeder.  Shroeder filed under the qui tam provisions of the False Claims Act, which permit private persons to bring a lawsuit on behalf of the United States and to share in the proceeds of the suit.  Mr. Shroeder will receive approximately $1.73 million.

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.