Abbott Laboratories has agreed to a $5.5 million settlement to resolve allegations the company illegally paid physicians kickbacks to entice them to use Abbott's carotid, biliary and peripheral vascular products.
The U.S. Justice Department had claimed Abbott paid prominent physicians for speaking engagements and teaching assignments with the expectation the physicians would arrange for the hospitals with which they are affiliated to purchase Abbott products. As a result, the federal government claimed Abbott violated the Anti-Kickback Statute. The government also alleged procedures performed using the Abbott products should not have been billed to Medicare under the False Claims Act.
The suit was instigated by two whistle-blowing former Abbott employees, who will receive a total of more than $1 million of the settlement under the whistle-blower provision of the False Claims Act.
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