Medical device maker CareFusion Corp. has agreed to pay $40 million to resolve civil claims by the U.S. government that it used unlawful marketing and kickbacks to promote its products. More than $3 million of the settlement will go to a whistleblower represented by a tiny law firm in Kansas.
The U.S. Department of Justice, which intervened in the case, announced the settlement on Thursday. Prosecutors alleged that CareFusion violated the False Claims Act by unlawfully promoting its ChloraPrep surgical prep products for off-label uses. The DOJ also accused CareFusion of funneling $11.6 million in kickbacks to Dr. Charles Denham in order to induce him to recommend ChloraPrep to health care providers. Denham is an influential physician who has taught at the Harvard School of Public Health and whose writings have appeared in The Wall Street Journal.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
