A settlement has been reached in a whistleblower class action lawsuit brought against EndoGastric Solutions Inc who is accused of misleading health care providers about how to bill federal health care programs for a procedure using a device manufactured by the company and by paying kickbacks.
As part of the settlement, the whistleblower will receive $945,000.
The lawsuit was filed in June 2012. The government's case included alleagations that EndoGastric Solutions knowingly caused health care providers to bill for the less invasive EsophyX procedure using codes applicable to the more invasive procedure, which provided for a higher level of reimbursement. As a result, federal health care programs allegedly paid more than they should have for the procedures using EsophyX.
The government also alleged that EndoGastric Solutions knowingly paid illegal remuneration to certain physicians for participating in patient seminars and co-marketing agreements to induce them to use EsophyX, in violation of the Federal Anti-Kickback Statute.
