At the Punishment Wheel – Are Medical Device Companies Getting Preferential Treatment?

By Thomas Sullivan Last updated May 5, 2018

The new Cardiovascular Systems, Inc. False Claims Act settlement has some in the industry wondering why CSI settled for such a small amount when we are used to pharmaceutical companies having to dive deep into their pockets to satisfy settlement costs. This article goes through the case background, comparison settlements, and discusses whether medical device companies are treated differently from pharmaceutical companies.

Cardiovascular Systems, Inc. (“CSI”) recently agreed to pay $8 million and sign a corporate integrity agreement (“CIA”) to settle a False Claims Act (“FCA”) lawsuit filed against them. The suit is based on allegations from a former sales representative that the company ran kickbacks and an off-label marketing scheme to boost sales on its orbital atherectomy devices.