Guidant LLC agreed to pay the United States $9.25 million to settle False Claims Act allegations against it.  According to the complaint, Guidant failed to give hospitals the warranty credits and rebates for the replacement of pacemakers and defibrillators still under warranty, thereby increasing the cost to federal healthcare programs including Medicare, Medicaid, Veteran’s Affairs, and the Department of Defense.

The suit was initially filed under the False Claims Act by a whistleblower.  The whistleblower, Robert A. Fry, will receive more than $2.3 million from the settlement.

Read the entire press release, “Boston Scientific Subsidiary Guidant Pays U.S. $9.25 Million to Settle False Claims Act Allegations”