Medical Device Company Settles Marketing-Related Kickback Charges With the U.S. Government

The United States Department of Justice continues to take enforcement action against medical device manufacturers that unlawfully provide kickbacks to healthcare professionals. In February 2009, the United States Attorney’s Office for the District of Massachusetts, in connection with the U.S. Department of Health and Human Services’ Office of the Inspector General (OIG), announced a Deferred Prosecution Agreement (DPA) with NeuroMetrix, Inc., after an investigation into the device company’s sales and marketing practices of its NC-stat System. The U.S. government alleged that the company engaged in unlawful marketing referral programs and encouraged improper reimbursement code billings.

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