DOW JONES NEWSWIRES
Cochlear Ltd.'s (COH.AU) American unit agreed to pay $880,000 to
settle allegations that paid various forms of illegal remunerations
to physicians that prescribed the company's implant devices to
Medicare and Medicaid patients.
The settlement resolves a 2004 whistleblower lawsuit filed by
Brenda March. The federal government stepped in during January 2007
and stayed the suit while it pursued an administrative civil
investigation into the matter.
The settlement settles both actions. March will receive $176,000
under the civil settlement as her suit was brought under provisions
that allow private citizens to bring suits on behalf of the U.S.
and share in any recovery.
Cochlear Americas last week resolved another long-running case
with the U.S. government, agreeing to pay $950,000 to settle
allegations related to its sales programs and other conduct from
1998 to 2003. In that case, Cochlear said it agreed to the
settlement to avoid ongoing legal fees, and the uncertainty and
expense of litigation.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
Tess.Stynes@dowjones.com
