CareFusion Settles Whistleblower Lawsuit for $40.1 Million

January 28, 2014 — Medicare fraud drives up health care costs and jeopardizes the safety of the nation’s health care system. The government depends on health care industry insiders to identify False Claims Act violations and to collaborate in the fight against health care fraud. The qui tam provisions in the Act give whistleblowers the means to do what’s right. Informants who file a claim on the government’s behalf may be entitled to a portion of the proceeds should the government make a recovery.

Company Insider Alleged CareFusion Paid $11 Million in Kickbacks and Promoted Products for Off-Label Uses

CareFusion Corp. has settled a whistleblower lawsuit alleging False Claims Act violations for $40.1 million. The qui tam suit was filed by a former vice president of regulatory affairs for CareFusion’s Infection Prevention Business Unit, Dr. Cynthia Kirk. As the relator in the action, Dr. Kirk will receive $3.26 million.
A medical technology business based in California, CareFusion manufactures pharmaceutical products, including ChloraPrep, used to prepare a patient’s skin before an injection or surgery. In 2008, CareFusion’s predecessor entered into an agreement with Dr. Charles Denham, who was then the co-chair of the Safe Practices Committee with the National Quality Forum (NQF), a non-profit group focused on establishing standardized health care performance safe practices. According to the Justice Department, CareFusion paid Denham $11.6 million in kickbacks to persuade him to use his influence at NQF to promote the use of ChloraPrep by health care providers.
Carefusion’s settlement also includes the resolution of allegations that from September 2009 to August 2011, CareFusion intentionally promoted ChloraPrep for off-label uses unapproved by the U.S. Food and Drug Administration.

Industry Insiders Play Central Role in Exposing Health Care Fraud

Health care industry insiders frequently identify False Claims Act violations involving illegal kickbacks or the filing of false claims for pharmaceuticals prescribed for off-label uses. These vital whistleblowers deserve to understand the process. With qui tam attorneys in multiple offices from coast to coast, Waters & Kraus protects tipsters’ rights and advances their interests. Contact us or call our False Claims Act lawyers at 855.784.0268 to learn more about working together to fight health care fraud.

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