WASHINGTON (Legal Newsline) — A New York medical device manufacturer who has been accused by the U.S. Department of Justice (DOJ) of fraudulent Medicare, Medicaid and other federal healthcare program billing has agreed to a $12.5 million settlement.
The DOJ alleges that AngioDynamics Inc. made certain claims about a drug delivery device for chemotherapy, even though clinical evidence did not support those claims. AngioDynamics was the U.S. distributor for the device's manufacturer, Biocompatibles plc. In addition, the DOJ alleges AngioDynamics knew several insurers would not cover its procedure, but prompted healthcare providers to use incorrect billing codes to submit false claims.
“When manufacturers make misleading statements concerning the use of their products in ways that have not been cleared by the FDA, it undermines patient care," Chad Readler, DOJ Civil Division acting assistant attorney general, said in a statement. "Taxpayers and patients deserve better.”
The settlement resolves a whistleblower lawsuit filed by a former AngioDynamics marketing department employee in the Western District of Texas, which alleged violation of the False Claims Act, according to the DOJ.