The U.S. Senate Judiciary Committee yesterday called on the Federal Trade Commission to investigate whether Mylan (NSDQ:MYL) broke the law after reports claimed the EpiPen maker prevented schools from buying competing allergy treatments. In a letter penned to the FTC, committee chairman Sen. Charles Grassley (R-Iowa) and ranking member Sen. Patrick Leahy (D-Vt.) wrote, “increasing patient access […]
U.S. Justice Dept. (DOJ)
Mylan, Teva crash as DOJ could file charges by end of year
The U.S. Justice Dept. could reportedly file charges in its generic-drug pricing probe into companies including Mylan Pharmaceuticals (NSDQ:MYL) and Teva Pharmaceuticals (NYSE:TEVA) by the end of year. The department is examining whether the generic drug makers colluded on drug pricing, Bloomberg reported yesterday. The news source said that Mylan and Teva have disclosed subpoenas and are cooperating […]
DoJ settles Grifols probe
The U.S. Justice Dept. closed its probe of Grifols (NSDQ:GRFS), according to an SEC filing from the company posted today. The DoJ told the company that it closed its investigation, which concerns “possible violations of the U.S. Foreign Corrupt Practices Act,” Sept. 29, according to the filing. Grifols wrote that in its decision to not prosecute, the DoJ acknowledged […]
Feds trumpet ‘largest ever’ $900m Medicare fraud takedown
(Reuters) — The U.S. Justice Dept. said today that federal law enforcement officials have hit a milestone in 2016 by completing the “largest takedown ever” against defendants allegedly trying to defraud Medicare and other federal insurance programs. The 2016 takedown involves 301 defendants and a loss amount of $900 million, the department said. That exceeds a record set […]
BK Medical gets $15m from Analogic over SEC charges
The U.S. Securities & Exchange Commission said today that Analogic (NSDQ:ALOG) agreed to pony up $15 million to settle civil and criminal charges brought over violations of the Foreign Corrupt Practices Act. The SEC said Peabody, Mass.-based Analogic’s Danish subsidiary, BK Medical, ran hundreds of sham transactions with distributors to funnel some $20 million to 3rd parties, […]
Report: Feds impanel grand jury in Boston Scientific pelvic mesh probe
A federal probe into allegations that Boston Scientific (NYSE:BSX) used counterfeit resin to make pelvic mesh products has reportedly convened a grand jury in West Virginia that’s already sent out several subpoenas. The accusations 1st surfaced in January with the filing of a purported class-action racketeering lawsuit in the U.S. District Court for Southern West Virginia, the venue for multi-district […]
Cardiovascular Systems to settle lawsuit for $8m
Cardiovascular Systems (NSDQ:CSII) said today that it agreed to an $8 million settlement with the plaintiff in a False Claims Act lawsuit based on allegations from a former sales rep that the company ran kickbacks and an off-label marketing scheme to boost sales of its orbital atherectomy devices. The deal calls for St. Paul, Minn.-based Cardiovascular Systems […]
Toshiba deals medical biz to Canon for $5.9B as U.S. authorities launch accounting probe
Toshiba (TYO:6502) said yesterday that it inked a deal to sell its medical device business to Canon (NYSE:CAJ) for $5.9 billion, as the U.S. Justice Dept. and the SEC probed the accounting practices in its U.S. businesses, and today said it plans to lay off an additional 3,000 workers. Toshiba last week granted Canon exclusive negotiating rights to buy […]
Alere slides on Justice Dept. subpoena, late filing
Alere (NYSE:ALR) shares took a hit today after revealing a U.S. Justice Dept. subpoena for documents on its sales practices in Africa, Asia and Latin America under the Foreign Corrupt Practices Act, as it prepared for its nearly $6 billion acquisition by Abbott (NYSE:ABT). The March 11 subpoena asks for documents on Alere’s dealings with 3rd-party distributors and […]
Coloplasty, Liberator Medical pay $3.6m to shed kickbacks case
Coloplast (CPH:COLO B) and Liberator Medical (NYSE:LBMH) agreed to pay a collective $3.6 million to settle allegations that they ran a kickbacks scheme to fuel sales of the Danish ostomy device maker’s products, federal prosecutors said yesterday. Coloplast agreed to pay $3.16 million and Liberator $500,000 to settle the case, although they admitted no liability in […]
Hospitals to pony up $28m for false kyphoplasty claims
The U.S. Justice Dept. said today that a group of 32 hospitals agreed to pony up a collective $28 million to settle charges that they billed Medicare at the inpatient rate for outpatient kyphoplasty procedures. In kyphoplasty, a treatment for vertebral compression fractures from osteoporosis, surgeons create a void within the vertebra and fill it […]