In 2006, Charles Donigan sued his former employer, St. Jude Medical, under the Federal False Claims Act for allegedly paying kickbacks to physicians and other health care providers to induce them to use St. Jude medical devices, including pacemakers. Four years later, after the government indicated its intent to intervene in the lawsuit, St. Jude is discussing settlement with the government. The allegations center around payments made to physicians for data collection and studies of St. Jude products, which included entertainment, travel and passes to sporting events. It is not clear how much money St. Jude might pay to settle. But, the case is part of a broader investigation of medical device kickbacks in which Boston Scientific recently settled claims for $22 million.
For more information see: http://online.wsj.com/article/BT-CO-20100826-711507.html
