Alleged Kickbacks for Using Medical Devices Set Stage for FCA Suit Against Manufacturer

Blackstone Medical Inc., the maker of devices used in spinal surgeries, is not entitled to dismissal of a former employee’s whistleblower suit alleging that kickbacks the company paid to doctors for using its products resulted in fraudulent Medicare claims in violation of the False Claims Act, the U.S. Court of Appeals for the First Circuit determined June 1 (United States ex rel. Hutcheson v. Blackstone Medical Inc., 1st Cir., No. 10-1505, 6/1/11).
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