C.R. Bard to Pay $48.26 Million to Resolve FCA Allegations

C.R. Bard, Inc., a New Jersey-based drug manufacturer, agreed to pay $48.26 million to the United States to resolve allegations that it violated the FCA by providing illegal remuneration to physicians and potential customers to induce them to purchase its brachytherapy seeds used to treat prostate cancer. The settlement arose from a qui tam suit filed in the Northern District of Georgia under the Federal False Claims Act by Julie Darity, a former Bard manager for brachytherapy contracts administration.  In her suit, Darity alleged that from 1998 to 2006, C.R. Bard paid illegal kickbacks to customers and physicians to induce them to purchase the brachytherapy seeds.  This illegal remuneration included certain types of grants, guaranteed minimum rebates, free medical equipment, marketing assistance, and conference fees. Because this remuneration was provided to customers and physicians violated the Anti-Kickback Statute, C.R. Bard caused the submission of false claims to Medicare by the physicians who billed for the seeds.  As her share of the recovery, Darity will receive $10,134,600.

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