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Cochlear Americas, a Colorado-based cochlear implant manufacturer, has agreed to pay $880,000 to resolve allegations that it paid illegal remuneration to health care providers to induce purchases of cochlear implant systemshttp://www.justice.gov/opa/pr/2010/June/10-civ-673.html, the Justice Department announced today. Cochlear Americas is a subsidiary of an Australian company, Cochlear Limited.
The settlement resolves
a lawsuit brought by a whistleblower, Brenda March, in 2004. The lawsuit, filed in the District of Colorado, alleged that
Cochlear Americas violated the
Anti-kickback Act and the False Claims Act by paying various forms of illegal remuneration to physicians who prescribed the use of the Cochlear-manufactured devices for Medicare and Medicaid patients.
"Todays actions demonstrate that the United States will not tolerate the payment of kickbacks by any entity involved in providing medical goods and services to beneficiaries of federal health care programs," said Assistant Attorney General Tony West, head of the Justice Departments Civil Division.
Ms. March brought her suit under the qui tam provisions of the False Claims Act, which permit private citizens with knowledge of fraud against the government to bring a lawsuit on behalf of the United States and to share in any recovery. Under the civil settlement announced today, she will receive $176,000."