Medtronic Settlement Could Be in Jeopardy

The Wall Street Journal has obtained an unredacted version of a 2002 lawsuit against Medtronic that contains some very damning allegations -- and was brought by a former lawyer for the firm, Ami Kelley.

September 25, 2008

1 Min Read
Medtronic Settlement Could Be in Jeopardy

It states that the company gave spinal surgeons "a variety of incentives to use its products, including regular entertainment at a Memphis strip club, trips to Alaska, and patent royalties on inventions they played no part in." The lawsuit, brought to recoup Medicare-fraud-related damages for the government, was one of two that led to Medtronic's $40 million settlement with the government in 2006. Kelley said she was fired by Medtronic after questioning the payments.That settlement may now be in jeopardy, as the other lawsuit's plaintiff, Jacqueline Poteet, has appealed the dismissal of her suit, saying the settlement was too small. Whistleblowers who help the government recover money can share in the settlement. If an appeals court reverses the dismissal, the government and Medtronic both have the right to void the settlement.Medtronic said it drastically revamped its policies regarding payments to physicians in 2004.

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