CareFusion Qui Tam Whistleblower Lawsuit

qui tam whistleblower lawsuitThe Department of Justice announced that it settled part and continues to intervene in the Carefusion Qui Tam whistleblower lawsuit.  CareFusion, a California-based medical technology company, develops, manufactures and sells pharmaceutical products, including products sold under the trade name ChloraPrep.

ChloraPrep has been approved by the Food and Drug Administration for the preparation of a patient’s skin prior to surgery or injection.

The CareFusion Corp. has agreed to pay the government $40.1 million to settle allegations that it violated the False Claims Act by paying kickbacks and promoting its products for uses that were not approved by the Food and Drug Administration.

The settlement resolves allegations that, under agreements entered into in 2008 by CareFusion’s predecessor,

  1. CareFusion paid $11.6 million in kickbacks to a doctor  that served as the co-chair of the Safe Practices Committee at the National Quality Forum, a non-profit organization that reviews, endorses and recommends standardized health care performance measures and practices.
  2. The allegations were that the purpose of those payments was to induce the doctor to recommend, promote and arrange for the purchase of ChloraPrep by health care providers.
  3. This settlement also resolves allegations that CareFusion knowingly promoted the sale of ChloraPrep for uses that were not approved by the Food and Drug Administration
    • some of which were not medically accepted indications
    • made unsubstantiated representations about the appropriate uses of ChloraPrep.
  4. The settlement resolves a lawsuit filed by former vice president of regulatory affairs for the Infection Prevention Business Unit of CareFusion (the whistleblower)
  5. The whistleblower’s, or relator’s, share in this case is $3.26 million.

The Carefusion qui tam whistleblower lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government when they believe that defendants submitted false claims for government funds and to receive a share of any recovery.  The False Claims Act also permits the government to intervene in such lawsuits, as it has done in this case.

For more information on Qui Tam Whistleblower lawsuits, click here.

We are here to help you recover federal and state government money from those unscrupulous individuals or companies that defraud our government. If you have original information about a possible violation of the federal securities laws that has occurred, is ongoing, or is about to occur you may be eligible to become a whistleblower.

We can help you submit this information anonymously so that your identity remains protected to the fullest extent possible. If you need help with providing whistleblower information anonymously (to the Department of Justice or The Office of the Whistleblower) about potential fraud (e.g., health care fraud, defense department contract fraud, securities fraud – governmental or non-governmental, contract fraud, investor fraud etc.), contact us.

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If you need help with providing whistleblower information anonymously to the Department of Justice or The Office of the Whistleblower about potential fraud and would like your case evaluated, contact our office at 1.844.329.5955.