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Massachusetts-based Boston Scientific Corp. has been named in a whistleblower suit filed in federal court in Houston, Texas, which suit charges that Boston Scientific, Medtronic Inc., and other medical device manufacturers defrauded the federal government by promoting their surgical devices for unapproved uses. The False Claims Act suit, filed by a former salesperson with Boston Scientific, alleged that the company and its Guidant Corp. unit devised a nationwide scheme involving illegal kickbacks to encourage doctors and hospitals to employ Boston Scientific’s surgical devices for off-label purposes, in violation of the Food, Drug and Cosmetic Act. The suit was similar to the one filed against Endoscopic Technologies Inc. (Estech), which was settled for a significant amount after the complaint was unsealed. The Justice Department has not yet decided whether the government will intervene in the suit against Boston Scientific and the other medical device manufacturers.
For the full story, go to the Boston Globe.