Judge tosses whistleblowers' lawsuit against Masimo

October 3, 2013 by Brad Perriello

A federal judge tosses a whistleblowers' False Claims Act lawsuit filed against Masimo by 3 former sales reps, saying they failed to produce any evidence of fraud by the patient monitoring company.

Masimo: Whistleblowers' accusations not only false, but improper

Masimo (NSDQ:MASI) won the dismissal of a whistleblowers' False Claims Act lawsuit after a federal judge found that the plaintiffs, a trio of former Masimo sales reps, failed provide any evidence of fraud or fraudulent intent.

The whistleblowers sued in October 2010, accusing Masimo of promoting off-label uses of its Pronto and Pronto-7 devices and improperly billing government insurance programs for the off-label uses, according to court documents. The reps – Michael Ruhe, Kristine Serwitz and Vicente Catala – also accused Masimo of withholding sales records and interfering with subpoenas issued to federal insurance programs seeking those documents, according to the filings.

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But Judge Cormac Carney of the U.S. District Court for Central California yesterday granted Masimo's bid for summary judgment, finding that the plaintiff's failed to prove any of their allegations in the case, according to court documents.