Relator's Attorneys Comment On AtriCure/DOJ Proposed Settlement

Wed Nov 4, 2009 6:09pm EST
 
[-] Text [+]
WASHINGTON, Nov. 4 /PRNewswire/ -- Sanford Wittels & Heisler, LLP, along with
co-counsel Grant Morris, announced today that AtriCure, Inc., a medical device
company specializing in cardiac surgical ablation systems, has reached a
tentative settlement agreement with the Department of Justice (DOJ) in a qui
tam case filed in 2007 for $3.8 million plus interest over a five-year period.

Sanford Wittels & Heisler and Grant Morris represent the relator in the case
against AtriCure, which was filed in the United States District Court for the
Southern District of Texas.  The complaint charges that AtriCure violated the
Federal False Claims Act by using illegal kickbacks and an off-label marketing
campaign to induce physicians and hospitals to perform AtriCure's costly
inpatient cardiac surgical ablation procedures over standard, and more
effective, outpatient catheter ablation procedures. As a result, the Medicare
program has faced substantial increased costs from AtriCure's unnecessary and
expensive procedures.

"AtriCure has done the right thing by settling this case before an onslaught
of negative publicity surrounding the DOJ investigation," said David Sanford,
co-lead counsel in the matter against AtriCure.

Specifically, the complaint alleges that AtriCure enticed hospitals to
purchase its products by promoting the spread between Medicare reimbursement
for AtriCure's surgical ablation procedure and the relatively low cost to the
hospital itself. AtriCure further provided physicians and hospitals with
kickbacks, including free equipment; price discounts; free advertising,
marketing, and referral services; and extensive training for surgeons
performing AtriCure procedures.  

"This settlement allows us to focus on the remaining three companies under
investigation: St. Jude Medical, Boston Scientific, and Medtronic," said Grant
Morris, co-lead counsel in the AtriCure qui tam case.

The tentative agreement between AtriCure and the DOJ is subject to the
completion and approval of a written settlement agreement.

Sanford Wittels & Heisler is a renowned class action and qui tam law firm with
offices in Washington, D.C., New York, and San Francisco that specializes in
qui tam, employment discrimination, wage and hour, consumer and complex
corporate class action litigation and has represented thousands of individuals
in major class action cases in the United States. The firm also represents
individual clients in employment, employment discrimination, sexual
harassment, whistleblower, public accommodations, commercial, medical
malpractice, and personal injury matters. Individuals with these claims are
encouraged to contact Sanford Wittels & Heisler at (202) 742-7777.




SOURCE  Sanford Wittels & Heisler, LLP

Kim Holt, +1-717-517-8382, kim@newspros.com

 

Featured Broker sponsored link

Editor's Choice

A selection of our best photos from the past 24 hours.  Slideshow 

Most Popular on Reuters

  • Articles
  • Video