C.R. Bard Inc. has agreed to pay $48.26 million to resolve allegations that it knowingly caused false claims to be submitted to the Medicare program for brachytherapy seeds used to treat prostate cancer in violation of the False Claims Act.
This case was initiated by a former Bard manager, who alleged that Bard improperly provided compensation to customers and physicians to induce them to purchase Bard’s seeds, in violation of the Anti-Kickback Statute. The illegal payments allegedly took the form of certain grants, guaranteed minimum rebates, conference fees, marketing assistance and free medical equipment that Bard paid to customers and physicians who used the seeds to perform treatment for prostate cancer. Hospitals ultimately submitted bills to Medicare for these seeds, which the government alleged were rendered false by Bard’s illegal kickback activity. The government alleged that Bard was liable under the False Claims Act for causing the submission of those false claims.
Pursuant to the qui tam provisions of the False Claims Act, the whistleblower who filed the lawsuit will receive $10,134,600 as her share of the civil settlement.
For more information on this case, click here: http://www.justice.gov/opa/pr/2013/May/13-civ-547.html