Industry News

Abbott Laboratories to Pay $5.475 Million for Allegedly Paying Kickbacks to Physicians.

Jennifer Kirchner | December 2013

The Department of Justice (DOJ) announced that Abbott Laboratories (Abbott) agreed to pay $5.475 million to resolve allegations that it violated the False Claims Act by paying kickbacks to induce physicians to use the company’s carotid, biliary and peripheral vascular products.  The government alleged that Abbott knowingly paid prominent physicians for teaching assignments, speaking engagements and conferences with the expectation that the physicians would arrange for the hospitals with which they were affiliated to purchase the vascular products.

The settlement resolves a qui tam lawsuit brought by two former Abbott employees under the False Claims Act, who will receive a total payment of more that $1 million.

The DOJ press release related to the Abbott Laboratories settlement is available at:

Department of Justice.  “Abbott Laboratories Pays U.S. $5.475 Million to Settle Claims that Company Paid Kickbacks to Physicians.”  Justice News.  27 Dec. 2013.

About the Author

Jennifer Kirchner is a licensed attorney in Illinois and Wisconsin. Ms. Kirchner has expertise in assessing provider compliance with the Anti-Kickback Statute, Stark Law, the False Claims Act, HIPAA Privacy and Security Rules and clinical research laws and regulations.