Whistleblowers Say Doctors Took Kickbacks from Medtronic to Sell Products
Get Legal Help Today
Secured with SHA-256 Encryption
UPDATED: Jul 14, 2021
It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.
A whistleblower lawsuit has been filed against nine Minnesota doctors alleging that they received kickbacks from Medtronic Inc.; the Minnesota based medical device company that has seen its share of scandals, recalls and lawsuits.
Over 100 doctors may have been involved
According to news reports, the lawsuit was filed by two former Medtronic employees and alleges that the company provided kickbacks to over 100 doctors and physician groups to buy and promote Medtronic’s Infusion Bone Graft’ one of the company’s best selling spinal surgery products that was responsible for nearly 20% of the company’s $13.5 billion in revenue in 2007. In addition to allegations of kickbacks, the lawsuit also alleges that the product was market for unapproved uses.
Scandals, recalls and lawsuits
While Medtronic was not named in the lawsuit and denies the allegations, the company has seen its share of scandals, recalls and lawsuits over the past few years. In 2007, Medtronic was investigated for providing kickbacks to doctors in the form of’sham consulting agreements, sham royalty agreements and lavish trips to desirable locations.’ However, those lawsuits were either dismissed or settled out of court for unknown amounts.
At around the same time, the company also found itself in hot water after it recalled its Sprint Fidelis defibrillator lead wire that has been linked to many injuries and deaths. As a result, the company faced hundreds of lawsuits.
The upward spiral of healthcare whistleblower lawsuits
There has been an upward spiral in the number of whistleblower, or Qui Tam, lawsuits filed in the healthcare industry over the past few years’ and industry analysts predict that the trend will continue. The U.S. Food & Drug Administration has publicly admitted that it does not have the resources to police the food, drug and medical device industries and companies operating in these industries seem to be taking advantage of the situation. Unfortunately, it’s everyday consumers and taxpayers who end up paying the price.