Abbott Laboratories, a global pharmaceuticals and health care products company based in Illinois, will pay $5.475 million to settle allegations that it violated the False Claims Act by paying kickbacks in order to induce doctors to implant the company’s products. According to the government, Abbott knowingly paid physicians for conferences and other engagements for the purpose of inducing their affiliated hospitals to buy Abbott’s carotid, biliary, and peripheral vascular products. The government alleged that these improper financial arrangements caused Abbott to submit false claims to Medicare and violate the FCA.

The lawsuit was originally filed by Steven Peters and Douglas Gray, former Abbott employees, who will receive a total of more than $1 million.

Read the entire press release, “Abbott Laboratories Pays U.S. $5.475 Million to Settle Claims that Company Paid Kickbacks to Physicians”