Medical Device Maker St. Jude Agrees To Resolve Federal Kickback Allegations

The Department of Justice announced Jan. 20 that medical device maker St. Jude Medical Inc. has agreed to pay the United States $16 million to resolve allegations that the company used post-market studies and a registry to pay kickbacks to induce physicians to implant the company’s pacemakers and defibrillators (United States ex rel. Donigian v. St. Jude Medical Inc.).

Among other things, the government alleged that St. Jude solicited physicians for studies in order to retain their business and/or convert their business from a competitor’s medical device. The government alleged that Minnesota-based St. Jude used three post-market studies ...