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Medtronic settlement challenged by excluded whistle-blower

The New York Times (subscription required) reported on August 1, 2006 that an objection to Medtronic’s settlement of illegal kickback allegations has been filed by a whistle-blower who was excluded from the deal. The objection claims that the settlement is “woefully inadequate,” that the case was not adequately investigated, and that one of the Justice Department lawyers had an undisclosed conflict.

Medtronic had agreed to pay $40 million to settle charges made in lawsuits by two whistle-blowers that the company’s spinal-implant division paid kickbacks to doctors to induce them to use its products. The Justice Department intervened in the first whistleblower suit and is expected to seek dismissal of the second suit, on the grounds that it made the same accusations as the first whistle-blower’s. The two suits covered different time periods.

For additional information see the July 19, 2006 entry at quitam.blogspot.com.

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