Medical Device Company Sentenced to Pay $42 Million
The Department of Justice says Magellan Diagnostics, headquartered in Billerica, MA, was sentenced in a Massachusetts federal court on 10/9 for criminal charges related to concealing a device malfunction that produced inaccurately low lead test results. A department statement says the company pleaded guilty to two counts of introducing a misbranded medical device into interstate commerce and was ordered to pay a $21.8 million fine, $10.9 million in forfeiture, and a minimum of $9.3 million to compensate patient victims.
Court documents indicate Magellan failed to timely notify FDA about a serious malfunction that caused its LeadCare devices to produce inaccurate blood test level results, the statement says. Magellan also reportedly changed the user instructions for the devices without prior agency notice or approval.
FDA ultimately determined that the LeadCare devices could not accurately test venous samples, leading to a recall of all the devices using venous samples and a warning to the public not to use LeadCare Ultra, LeadCare II, or LeadCare Plus for testing venous blood samples because of the malfunction and a recommendation that doctors retest certain patients, according to the Justice Department.