Alere Paying $38.75 Million for False Claims Allegations
Alere Inc. and its Alere San Diego subsidiary will pay $38.75 million to resolve federal government allegations that they violated the False Claims Act by billing Medicare for defective rapid point-of-care testing devices. A Department of Justice statement says the government alleges that between 2008 and 2018 the companies knowingly sold defective INRatio blood coagulation monitors used by Medicare beneficiaries taking anticoagulant drugs. For such patients, the department says, monitoring is essential to determining a clinically appropriate and safe dosage for their medications.
The government says Alere allegedly knew that the software algorithm used in each version of the monitors contained a material defect. “Based on its own internal research, as well as external complaints and warnings, Alere allegedly knew that INRatio devices had a ‘system limitation’ that produced inaccurate and unreliable results for some patients,” the statement says.
The government says the monitors were linked to over a dozen deaths and hundreds of injuries. The company allegedly failed to take appropriate corrective actions until 2016, when the devices were removed from the market following a nationwide Class 1 product recall undertaken at the request of FDA, it says.