St. Jude allegedly marketed the devices by “touting the generous credits available should a device need to be replaced while covered under warranty,” according to the news release. The government claimed St. Jude knew it failed to grant appropriate credits to the purchasers of devices in a large number of cases where a product was replaced while still under warranty.
As a result, the United States contended St. Jude submitted invoices to Department of Veterans Affairs hospitals and Department of Defense military treatment facilities that overstated the cost for replacement pacemakers or defibrillators.
The civil settlement resolves allegations initially brought by two whistleblowers in federal court in the District of Massachusetts under the qui tam provisions of the False Claims Act. The whistleblowers will each receive $730,000 from the settlement amount.
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