Abbott Labs Shells Out $5.48 Million to Settle Kickback Suit

In 2010, The New York Times divulged that a Baltimore cardiologist had implanted 30 stents from Abbott Labs on a single day. Soon thereafter, Abbott rewarded the cardiologist, Mark Midei, MD, with a lavish meal at his home that cost the company $2159. The case set off an investigation by the Senate Finance Committee that alleged that the problem was widespread. Now, Abbott will pay the $5.48 million to resolve allegations that it had a track record of financially rewarding physicians who implanted its carotid, biliary, and peripheral vascular devices. The U.S. government accused the company of violating the federal Anti-Kickback Act and playing a role in rewarding doctors for submitting fraudulent Medicare claims. Two former Abbott employees Douglas Gray and Steven Peters, will be awarded over $1 million under the settlement. This development was made possible thanks to the qui tam provision of the False Claims Act, which enables whistleblowers to obtain compensation on on behalf of the United States.The U.S. government has been working for years to uncover inappropriate ties between doctors and device makers. In 2007, it found that five major orthopedic device firms were in violation of the Federal Anti-Kickback Statute: Stryker, Biomet, DePuy, Smith & Nephew, and Zimmer. The latter four of those firms paid $310 million to settle the allegations.