U.S. District Judge Douglas Woodlock has ruled the U.S. Department of Justice can join a whistleblower suit against St. Jude Medical alleging the company providing kickbacks to physicians in return for their use of St. Jude's pacemakers and defibrillators, according to a Bloomberg Businessweek report.
The DOJ previously said it would not join the case, which was filed in 2006 by a former employee of St. Jude, but changed its decision after reviewing additional documents and interviewing witnesses involved in the case, according to the Bloomberg Businessweek report. The DOJ filed for a motion to join on Aug. 5.
The original suit alleges that St. Paul, Minn.-based St. Jude falsely billed federal healthcare programs for St. Jude devices, because the physicians were illegally induced to use the St. Jude products. The suit alleged, specifically, that physicians received payments for data collection and other services related to clinical trials of St. Jude products that served as nothing more than kickbacks for the use of St. Jude products, according to a report by the Wall Street Journal.
St. Jude has said it will "vigorously" defend the allegations.
The DOJ has until Aug. 31 to file its own complaint.
In June, St. Jude along with two hospitals — Parma (Ohio) Community General Hospital and Norton Healthcare, in Louisville, Ky — agreed to pay the U.S. $3.9 million to settle separate false claim allegations involving rebates.
The DOJ previously said it would not join the case, which was filed in 2006 by a former employee of St. Jude, but changed its decision after reviewing additional documents and interviewing witnesses involved in the case, according to the Bloomberg Businessweek report. The DOJ filed for a motion to join on Aug. 5.
The original suit alleges that St. Paul, Minn.-based St. Jude falsely billed federal healthcare programs for St. Jude devices, because the physicians were illegally induced to use the St. Jude products. The suit alleged, specifically, that physicians received payments for data collection and other services related to clinical trials of St. Jude products that served as nothing more than kickbacks for the use of St. Jude products, according to a report by the Wall Street Journal.
St. Jude has said it will "vigorously" defend the allegations.
The DOJ has until Aug. 31 to file its own complaint.
In June, St. Jude along with two hospitals — Parma (Ohio) Community General Hospital and Norton Healthcare, in Louisville, Ky — agreed to pay the U.S. $3.9 million to settle separate false claim allegations involving rebates.