Biomet to Pay Over $6 Million to Resolve Whistleblower Claims That It Paid Kickbacks to Doctors

PHILADELPHIA, Oct. 31, 2014 /PRNewswire/ -- Medical device companies EBI, LLC, of New Jersey, and Biomet, Inc., of Indiana, have agreed to pay the United States $6.07 million to resolve allegations that they used kickbacks to induce physicians to purchase the companies' bone growth stimulators.

The settlement this week stems from a whistleblower complaint filed by a former employee of Biomet, Yue Yu, pursuant to the qui tam provisions of the False Claims Act.

Ross Feller Casey, LLP, a Philadelphia-based personal injury law firm with a national reputation, represented Yu in the matter. Following Yu's filing, the government intervened in the case and Brian J. McCormick, Jr. of Ross Feller Casey worked with government lawyers to litigate and ultimately settle this case.

"Decisions about medical devices should be based on the best interests of the patient, not on whether the manufacturer pays a kickback," said McCormick, who has a large and successful whistleblower practice. "These sorts of improper financial incentives undermine the integrity of medical decisions, waste taxpayer funds and are unfair to competitors who play by the rules."

Yu alleged that the defendants, which also operate under the name Biomet Spine & Bone Healing Technologies, caused false claims to be submitted to Medicare and Medicaid by using illegal kickbacks, including remuneration to staff in doctors' offices under personal service agreements to induce orders of OsteoGen bone growth stimulators. The U.S. concluded that these payments violated the Anti-Kickback Act. The settlement also resolved allegations that EBI was reimbursed for stimulators that had been refurbished. 

The settlement was the result of a coordinated effort among the Department of Justice's Civil Division, the U.S. Attorney's Office for the District of Massachusetts, and the U.S. Attorney's Office for the District of New Jersey. Under the settlement, Yu will receive an award from the federal government, as well as from four states that also settled with Biomet.

McCormick praised the government prosecutors and investigators. "The attorneys and investigators were very diligent in investigating the allegations in our complaint," McCormick said. "It was an honor to work alongside them and stop this type of misconduct."

Ross Feller Casey's whistleblower practice group is committed to representing whistleblowers in False Claims Act cases as well as cases filed under IRS, SEC and other whistleblower statutes. Go to http://www.rossfellercasey.com/practice-areas/whistleblower-litigation/

SOURCE Ross Feller Casey, LLP