Device Co. EndoGastric To Pay $5M In FCA Kickback Suit

Law360, Los Angeles (February 19, 2014, 4:20 PM EST) -- Medical device maker EndoGastric Solutions Inc. will pay about $5.25 million to settle a False Claims Act whistleblower lawsuit accusing the company of paying kickbacks and misleading health care providers about how to bill federal health care programs, the U.S. Department of Justice said Wednesday.

Redmond, Wash.-based EndoGastric manufactures and sells a device called EsophyX, which is intended to treat gastroesophageal reflux disease as an alternative to a more invasive procedure. The government accused EndoGastric of encouraging health care providers to bill for the less invasive...
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