St. Jude To Pay $3.7M Over Hospital Kickback Scheme

Law360, New York (June 4, 2010, 3:19 PM EDT) -- Heart device manufacturer St. Jude Medical Inc. is set to fork over $3.7 million to the U.S. government in order to resolve allegations that it paid illegal kickbacks to two hospitals in a bid to secure business.

The payout, announced Friday by the U.S. Department of Justice, will settle a suit brought under the False Claims Act that the kickbacks caused false claims to be submitted to federal health care programs.

The kickbacks included alleged rebates that were “retroactive” and paid based on a hospital’s previous...
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