Alere Settles FCA Allegations for $33.2 Million
The Justice Department says Alere will pay the federal government $33.2 million to resolve allegations that it caused hospitals to submit false claims to federal healthcare programs by knowingly selling materially unreliable point-of-care diagnostic testing devices. A government False Claims Act complaint said that between 1/2006 and 3/2012, Alere knowingly sold materially unreliable point-of-care Triage testing devices to aid in diagnosing acute coronary syndromes, heart failure, drug overdose, and other serious conditions. The complaint said the devices were frequently used in emergency departments where timely decisions are critical to ensure proper patient care.
A Justice Department news release says Alere had received patient complaints that put it on notice that certain of its devices produced erroneous results that had the potential to create false positives and false negatives that adversely affected clinical decision-making. Nonetheless, it says, the company failed to take appropriate corrective actions until FDA inspections prompted a nationwide product recall in 2012.
Of the $33.2 million, the Justice Department says, $28,378,893 will be returned to the federal government and $4,860,779 to individual states that jointly funded claims for Triage devices submitted to state Medicaid programs.
The settlement resolves a whistleblower suit filed under the False Claims Act by former Alere senior quality control analyst Amanda Wu. Under terms of the settlement, she received about $5.6 million.