AngioDynamics to pay $12.5 million over false claims allegations: U.S. Justice Department

WASHINGTON (Reuters) - AngioDynamics Inc has agreed to pay the U.S. government $12.5 million to resolve allegations it caused healthcare providers to submit false claims to federal healthcare programs over the use of two medical devices, the Justice Department said on Wednesday.

The New York-based medical device maker will pay $11.5 million over allegations it was the distributor for Biocompatibles Plc of the LC Bead for use as a drug-delivery device in combination with chemotherapy drugs from May 2006 through December 2011, the department said in a statement.

It will pay $1 million to resolve allegations that the company caused false claims to be submitted to federal healthcare programs in connection with the use of the PVAK, later renamed the 400 micron kit, the department said.

Reporting by Eric Walsh; editing by Grant McCool