By Tess Stynes
Medtronic Inc. (MDT) agreed to pay $9.9 million to settle
allegations that the company provided illegal payments or services
to physicians in order to increase use of the medical-device
maker's implantable pacemakers and defibrillators.
According to the Justice Department, Medtronic allegedly
encouraged physicians to use its products through several means,
including paying physicians to speak at events aimed at increasing
referrals, developing marketing/business development plans for
physicians free of charge and providing tickets to sporting
events.
In a statement, Medtronic said the settlement brings to a close
a long-running review of marketing practices between 2001 and 2009
related to sales of pacemakers, defibrillators and other
heart-related diagnostic and monitoring devices to physicians.
Medtronic added that it makes no admission that any activities
were improper or unlawful and said the company established a
reserve for the full anticipated payment in the quarter ended April
25.
The settlement stems from a complaint filed by a former
Medtronic employee under the whisteblower provisions of the False
Claims Act. The Justice Department said the claims in the
settlement are allegations only and there hasn't been a
determination of liability.
Write to Tess Stynes at tess.stynes@wsj.com
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