Whistleblower Litigation Reaches Successful Conclusion Against Innovative Therapies

June 29, 2017

On June 29, 2017, the United States Department of Justice reported that Innovative Therapies, a subsidiary of Cardinal Health, agreed to a $2.71 million settlement to resolve whistleblower allegations of Medicare billing fraud.

In the action filed in 2015, a whistleblower alleged that Innovative allowed false claims to be submitted to Medicare by marketing specific wound treatment devices as “durable medical equipment,” when in fact the devices were intended for disposable use and were in no way durable for sustained use. Medicare does not typically pay for disposable equipment. The fraudulent billing practices were engaged in prior to Cardinal Health’s purchase of Innovative in 2014.

“The Middle District of Tennessee is a hub for health care industries that are dependent upon Medicare and Medicaid dollars,” said Jerry Martin, Of Counsel to Robbins Geller and one of the attorneys litigating the case. “The Department of Justice can’t effectively monitor the billions of government funds that flow through this district without the assistance of brave whistleblowers who come forward and report fraud.”

Robbins Geller is committed to fighting for whistleblower clients in its efforts to combat fraud. The Firm is dedicated to ensuring that its clients receive the compensation and protection they deserve. To learn more, visit our Whistleblower practice page.


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