A settlement has been reached to resolve False Claims Act allegations against Coloplast Corp and Liberator Medical Inc.
According to the Department of Justice, the allegations arose from a lawsuit claiming Coloplast Corp paid kickbacks to Byram Healthcare Centers, Inc.; CCS Medical, Inc.; Liberator; Liberty Medical, Inc. and Handi Medical, Inc., in return for marketing promotions and conversion campaigns. In the case of Byram, Liberty and Handi, Coloplast’s promotional campaigns allegedly included kickbacks in the form of funding for cash incentives sometimes known as “spiffs” paid to the suppliers’ sales personnel to induce them to refer patients to Coloplast products.
Also, allegations arose claiming Liberator Medical received kickbacks from Coloplast in the form of price concessions, in return for Liberator’s agreement to conduct two campaigns promoting Coloplast ostomy products to Liberator’s customers.
These allegations were brought forward by two former employees of Coloplast Corp.
