Stryker Pays $16.6M To Quell Qui Tam Allegations

Law360, New York (November 15, 2007, 12:00 AM EST) -- Two whistleblowers who filed suits under the False Claims Act will split almost $3 million as a result of Stryker Corp. agreeing to shell out $16.6 million to resolve allegations that Physiotherapy Associates Inc. — formerly a unit of Stryker — submitted false claims to federal health care programs, the U.S. Department of Justice said on Wednesday.

Stryker sold Physiotherapy Associates, its former outpatient physical therapy business, to private equity firm Water Street Healthcare Partners for $150 million in June.

Stryker negotiated the settlement deal and...
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