Device Cos. Decry DOJ 'Smears' Amid Fraud Inquiry

Law360, New York (July 25, 2016, 3:27 PM EDT) -- Medical device companies asked a California federal court Friday to dismiss or unfreeze False Claims Act litigation brought by the U.S. Department of Justice over alleged kickback violations, arguing it is unfairly delaying the case and waging a one-sided “smear” campaign.

The request comes in a case that the DOJ launched in 2014 against spinal implant maker Reliance Medical Systems LLC and its founders and affiliated distributors. The case centers on so-called physician-owned distributorships that give doctors financial incentives to use specific medical devices, potentially tainting their judgment and resulting in illicit billing of Medicare.

The case has been stayed for...

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