A former sales rep for Medtronic‘s (NYSE:MDT) neuromodulation business sued the company yesterday, alleging that she was fired for reporting violations both of Medtronic’s policies and of state and federal anti-fraud laws.
Susan White was hired for her 2nd stint at Fridley, Minn.-based Medtronic in December 2011, according to the lawsuit, and did well enough in her initial training to win an award from the company.
But during her training, White claimed in the suit, she observed Medtronic employees programming neurostimulation devices, touching and bandaging patients and promoting off-label uses for the devices – all activities that violate Medtronic’s won rules, the False Claims Act and the Texas Medicaid Fraud Prevention Act, the lawsuit claimed.
During and after repeated attempts to report the violations up through the chain of command, White alleged, her supervisors retaliated with verbal harassment and physical intimidation, setting her up to fail before ultimately engineering her firing on a pretext in April 2012.
“Medtronic retaliated against Susan White because she reported illegal activities and company policy violations. She courageously reported to multiple company officials, from her direct supervisor to Human Resources, and ultimately to Medtronic’s Legal Department. Medtronic officials responded harshly, labeling White ‘not a team player’ and ultimately terminating her," according to the lawsuit. "In the brief period between her 1st complaints and the termination, Medtronic’s view of White’s performance went from complimentary – ‘[a]ll is good’ and ‘way ahead’ of schedule – to critical. What changed in that time was that White repeatedly pressed her complaints despite opposition from supervisors and other company representatives."
A Medtronic spokeswoman told MassDevice.com via email that the company has not been served with the complaint.
"Once we are served the complaint we will thoroughly review the details of the case," she wrote.
White wants the U.S. District Court for Eastern Texas to declare "that Medtronic’s actions violated federal and/or state law," according to court documents. She’s also seeking reinstatement "to the position and seniority that she would have held but for retaliation," or front pay if reinstatement isn’t feasible, and twice the amount of back pay plus interest. White also wants compensation "for any special damages due to the retaliation, including nonpecuniary harm, litigation costs and expenses, and reasonable attorney’s fees" and pre- and post-judgment interest.
