Covidien Settling False Claims Act Case for $17 Million

The Justice Department says Covidien has agreed to pay $17,477,947 to resolve whistleblower allegations it violated the False Claims Act by providing free or discounted practice development and market development supports to doctors in California and Florida to induce purchase of the company’s vein ablation products. The government says the development support the company provided included customized marketing plans for specific vein practices, scheduling and conducting “lunch and learn” meetings and dinners with other doctors to drive referrals to specific vein practices, and providing substantial assistance to specific vein practices in connection with planning, promoting, and conducting vein screening events to cultivate new patients for the practices.

Under the settlement agreement, Covidien will pay an additional $1,474,892 to California and $1,047,160 to Florida for claims settled by their Medicaid programs.