Cardiovascular Systems (NSDQ:CSII) late last week became the latest medical device company to reveal a federal probe into possible marketing or False Claims Act violations.
CSI revealed late Friday that the district attorney for western North Carolina is conducting an investigation “to determine whether the company has violated the False Claims Act, resulting in the submission of false claims to federal and state health care programs, including Medicare and Medicaid.”
The western N.C. DA issued a civil investigative demand for “written interrogatories and document requests,” St. Paul, Minn.-based CSI said in a regulatory filing.
“The company maintains rigorous policies and procedures to promote compliance with the False Claims Act and other regulatory requirements, and is working with the U.S. attorney’s office to promptly respond to the CID,” CSI said in the filing.
There’s been a spate of similar filings in recent weeks from the likes of St. Jude Medical (NYSE:STJ), Boston Scientific (NYSE:BSX), Masimo (NSDQ:MASI) and Abiomed (NSDQ:ABMD).
St. Jude said it received a CID last month from the U.S. Justice Dept.’s Civil Division as part of a probe into allegations that it paid illegal kickbacks to encourage physicians to buy its cardiac devices. Boston Scientific said it received a subpoena from the U.S. Health & Human Services Dept. over its Cognis and Teligen implantable cardiac defibrillators. And Masimo said federal prosecutors in California are looking into some of its patient monitoring devices. Earlier this month Abiomed said the U.S. Health & Human Services Dept. is investigating payments it made to healthcare providers.