ResMed Settles FCA Suits Over Referral Fraud For $39.5M

Law360 (January 15, 2020, 9:28 PM EST) -- A California-based medical equipment manufacturer will pay $39.5 million to resolve five False Claims Act lawsuits claiming it paid suppliers, sleep labs and health providers illegal kickbacks to sell more of its products for sleep disorders, the U.S. Department of Justice announced Wednesday.

The settlement ends five qui tam lawsuits filed by whistleblowers in federal courts in California, South Carolina, New York and Iowa alleging ResMed Corp. violated the Anti-Kickback Statute by providing sleep labs with free airway pressure masks and diagnostic machines and nonsleep specialist physicians with free home sleep testing in exchange for patient referrals. All of those items...

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