Manufacturer of Defective Heart Devices Settles False Claims Act Case for $27 Million

St. Jude Medical Inc. (“St. Jude”), which was acquired by Abbott Laboratories in 2017, entered into a settlement last week with the United States Department of Justice (“DOJ”) for $27 million to resolve allegations it had violated the False Claims Act (“FCA”). The case was initially filed in 2016 by whistleblower Debbie Burke under the FCA’s qui tam provisions. These provisions allow a private individual who is aware of fraud resulting in financial loss to the government to file a lawsuit on behalf of the United States in federal court. The majority of FCA cases, including this one, revolve around the submission of fraudulent claims for reimbursement under government healthcare programs such as Medicare, Medicaid, and TRICARE. FCA whistleblowers, such as Ms. Burke, are eligible to receive between 15-30% of any recovery obtained by the United States as the result of a qui tam FCA action.