Covidien to Pay $20M to Settle Charges for Allegedly Violating False Claims Act


On the other hand, U.S. Attorney David L. Anderson for the Northern District of California, commented, “Patients in federal health care programs deserve medical care that is free from improper financial incentives. As this case makes clear, companies must steer clear of violating the Anti-Kickback Statute or risk being pursued.”

Meanwhile, FBI San Francisco Special Agent in Charge John F. Bennett, said, “Kickback schemes don’t just victimize those directly involved, they undermine the public’s trust in our healthcare system and drive up costs for everyone.” He added that the FBI and its partners will aggressively pursue healthcare providers who put their own greed before the needs of their patients.

Three whistleblowers, Erin Hayes, Richard Ponder, and Shawnea Howerton filed a lawsuit on behalf of the United States against Covidien. Hayes and Ponder are former sales managers for Covidien. They will receive $3,146,030 as their share of the federal recovery.

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Howerton is former employee of one of the clients of the medical supply distributor.