The U.S. Justice Dept. said yesterday that Shire (NSDQ:SHPG) and its subsidiaries will cough up $350 million to settle allegations that Shire and the company it acquired in 2011, Advanced BioHealing, gave kickbacks to clinics and physicians in exchange for using its bioengineered human skin substitute, Dermagraft.
“This settlement represents the largest False Claims Act recovery by the United States in a kickback case involving a medical device,” principal deputy assistant attorney general Benjamin Mizer said in prepared remarks. “Kickbacks by suppliers of healthcare goods and services cast a pall over the integrity of our health care system. Patients deserve the unfettered, independent judgement of their health care professionals.”