Covidien settles whistleblowers’ kickback allegations for nearly $17.5 million

On March 11, the Department of Justice announced that Covidien, LP, had agreed to pay nearly $17.5 million to settle civil allegations, originally brought by whistleblowers in two False Claims Act qui tam complaints, that the company provided kickbacks to physicians in California and Florida. According to DOJ’s press release: Covidien LP has agreed to pay $17,477,947 to resolve allegations that it violated the False Claims Act by providing free or discounted practice development and market development support to physicians located in California and Florida to induce purchases of Covidien’s vein ablation products, the Department of Justice announced today. *   *   * The United States alleged that Covidien violated the Anti-Kickback Statute and, correspondingly, the False Claims Act by providing practice development and market development support to health care providers located in California and Florida from Jan. 1, 2011, through Sept. 30, 2014,…

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