California’s Central District Court had good news for Kinetic Concepts, Inc. (NYSE:KCI), ruling that opposing attorneys violated ethical standards in a whistleblower case, barring prosecuting counsel from continuing with the litigation.
The lawsuit started when Steven Hartpence and Geraldine Godecke blew the whistle on KCI, claiming the medical device company stole money from the government through a false claims scheme.
The pair took documents with them from KCI offices as evidence, but the California court said their attorney Kent Kawakami failed to abide by California bar standards for “privileged documents,” banning him from continuing with the case.
The win for San Antonio, Texas-based KCI might be short-lived, however, as Hartpence and Godecke may hire another firm to represent them in this case, and also in Godecke’s additional claim that KCI wrongfully terminated her for her role as a whistleblower.