Endoscopic Technologies Qui Tam Action–$1.2 Million Settlement

Case name: United States ex rel. Bennett v. Endoscopic Technologies, Inc.
Case type: Whistleblower & Qui Tam
Filed in: [U.S. District Court for the Southern District of Texas]
Docket: [Case No.: H-07-2705]

Case Summary

In July 2009, Sanford Heisler Sharp and the U.S. Government settled a whistleblower action under the False Claims Act (“FCA”) with Endoscopic Technologies, Inc. (“Estech”), a medical device manufacturer.

As part of the settlement, Estech agreed to pay the government $1.4 million. The Relator, who was represented by Sanford Heisler Sharp, received $210,000, or 17% of the settlement.

The Complaint alleged that Estech marketed its medical devices to treat atrial fibrillation, a use not approved by the Food and Drug Administration. The Complaint also alleged that Estech promoted expensive heart surgeries using the company’s devices when less invasive alternatives were appropriate; advised hospitals to up-code surgical procedures using the company’s devices to inflate Medicare reimbursements; and paid kickbacks to healthcare providers to use its devices.