Medical device manufacturer AngioDynamics has agreed to pay $12.5 million in order to settle a number of claims made in a recent False Claims Act lawsuit. The settlement includes a $2.3 million whistleblower award.

The lawsuit was brought against AngioDynamics alleging that the company caused healthcare providers to submit false claims regarding some of its medical devices to federal healthcare programs, including Medicare and Medicaid.

According to the lawsuit, AngioDynamics manufactured an unapproved device and marketed it deceptively, claiming it was safer than other options—despite the fact that the FDA had twice declined to approve the device—then instructed healthcare providers to use inaccurate billing codes when submitting claims.

“The Justice Department is committed to holding medical device manufacturers accountable, which includes requiring that they follow all laws designed to ensure that medical devices are safe and effective,” said Acting Assistant Attorney General Chad A. Readler for the Justice Department’s Civil Division, in a press release. “When manufacturers make misleading statements concerning the use of their products in ways that have not been cleared by the FDA, it undermines patient care. Taxpayers and patients deserve better.”

These claims were first brought to the Justice Department’s attention by a whistleblower, a former marketer for AngioDynamics, Ryan B. For his part in the litigation, Ryan has been given a $2.3 million whistleblower award.

“This settlement reflects the expectation that medical device manufacturers will give doctors accurate information about devices they manufacture and underscores the vital role of the False Claims Act in protecting the public fisc,” said United States Attorney Grant C. Jaquith for the Northern District of New York.

The Justice Department is often tipped off about False Claims Act litigation by interference from a whistleblower. If you have witnessed some kind of fraud by your employer against the federal government, you may be able to file a whistleblower lawsuit.

Pursuing a Whistleblower Award

Whistleblowers are individuals who report the fraud and illegal activities against the government of their current or former employers. Many employees choose to come forward as whistleblowers because they do not feel right about their employer’s actions. A whistleblower lawsuit can be filed while working at the company, but can also be filed after having left the company.

A person considering becoming a whistleblower on behalf of the government may worry about being fired or otherwise retaliated against at work. However, there are regulations in place to protect whistleblowers from this kind of retaliation.

While a person considering becoming a whistleblower may be worried that they will face retaliation for their actions, the whistleblower is typically given a whistleblower award—often between 15 and 30 percent of the money recovered in the subsequent lawsuit. In this case, the former marketer who acted as a whistleblower against AngioDynamics received a $2.5 million whistleblower award for his part in bringing the False Claims Act lawsuit to the attention of the federal government.

If you believe you have witnessed some kind of fraud by your current or former employer, including hospice care Medicare fraud, you may be able to file a whistleblower lawsuit (also known as a qui tam lawsuit) against your employer on behalf of the government.