NJ Awarded Part of $40M National Whistleblower Settlement

The State of New Jersey learned it will be receiving nearly $240,000 because of its participation in a national qui tam case. CareFusion Corp., formerly known as Cardinal Health, was ordered by the US government to pay over $40 million to resolve a federal whistleblower lawsuit. The suit claimed the company violated national and state laws in its promotion of a surgical preparation solution called Chloraprep.

CareFusion violated the federal and state False Claims Act by using illegal marketing tactics and paying unlawful kickbacks to persuade healthcare providers to use Chloraprep. The qui tam suit originated in Kansas before other states and the federal government joined.

CareFusion promoted Chloraprep for to be used in ways not approved by the FDA, namely intravenous site preparation and suture care. It was originally approved for in-patient hospital procedures, such as skin preparation before an incision or injection. Despite FDA approval, CareFusion advertised the product for the off-label uses. In addition, the government found, CareFusion made misrepresentative statements about its product between 2009 and 2011.

In 2008, as Cardinal Health, the company entered into financial agreements and made payments to a company known as Health Care Concepts Inc. The government found these payments were made to conceal illegal kickbacks to the physician owner of Health Care Concepts. CareFusion apparently paid the doctor to use Chloraprep.

The state of New Jersey and the federal government view violations of the False Claims Act to be a serious offense. In this case, using a medical device for procedures not approved by the FDA was illegal and could have caused significant harm to patients.

If you have knowledge of a False Claims Act violation, you may be able to be compensated for “blowing the whistle” on the guilty parties. Talk to a qualified qui tam lawyer who will discuss the merits of your case.

The qui tam attorneys at Begelman & Orlow, P. C. have more than 115 years of combined experience fighting for the rights of people in New Jersey and throughout the US. If you have knowledge of any fraudulent activity, contact the whistleblower lawyers at Begelman & Orlow, P. C..