Medtronic (NYSE:MDT) agreed to settle another whistleblower lawsuit with the U.S. Justice Dept., putting up $2.8 million but admitting no wrongdoing in the off-label promotion case.
Federal prosecutors, based on a qui tam lawsuit filed by former Medtronic sales rep Jason Nickell, accused the Fridley, Minn.-based company of promoting the off-label use of its neurostimulators for subcutaneous peripheral nerve field stimulation.
"In these procedures, Medtronic’s spinal cord stimulation devices were placed just beneath the skin near an area of pain, most often in the lower back, where the devices could provide electrical impulses to create a ‘tingling’ sensation intended to alleviate chronic pain," prosecutors alleged, "even though the safety and efficacy of SubQ stimulation had not been established as required by the Food & Drug Administration."
Similar charges levied in the suit against Boston Scientific (NYSE:BSX) and St. Jude Medical (NYSE:STJ) were dismissed, according to court documents.
Nickell is in line to receive $602,000 for his part as whistleblower, according to the Justice Dept.
Medtronic this week settled another qui tam whistleblower case, agreeing to pay $1.3 million but admitting no guilt in a lawsuit inherited from the Ev3 subsidiary it acquired in the $50 billion Covidien deal.