Whistleblower Receives $514,397 in False Claims Act Lawsuit Alleging Fraud by ResMed Corp. Related to the Sale of Equipment for Sleep Apnea and Other Sleep-Related Disorders
Whistleblower Receives $514,397 in False Claims Act Lawsuit Alleging Fraud by ResMed Corp. Related to the Sale of Equipment for Sleep Apnea and Other Sleep-Related DisordersResMed Corp. (ResMed), a manufacturer of durable medical equipment (DME) agreed to pay more than $37.5 million to the federal government to resolve multiple whistleblower lawsuits under the False Claims Act. The whistleblower, who was one of many in this settlement, filed a qui tam action in the United States District Court for the Northern District of Iowa alleging violations of the False Claims Act. Specifically, the whistleblower alleged that ResMed facilitated interest-free loans that DME suppliers acquired from third-party financial institutions to purchase ResMed equipment in order to improperly induce DME suppliers to recommend and provide ResMed’s equipment to beneficiaries of federal health care programs.
After the whistleblower filed the lawsuit, attorneys for the United States Department of Justice investigated the matter and intervened in the case. For his efforts in filing the lawsuit on behalf of the United States and assisting the United States in the recovery, the whistleblower was awarded $514,397.
The federal False Claims Act provides incentives for private citizens with knowledge of fraud against the United States and any of its agencies to come forward. Such whistleblower lawsuits must be filed “under seal” to allow the United States Department of Justice an opportunity to investigate prior to any public disclosure of the lawsuit. If the United States Department of Justice intervenes in the case, the False Claims Act generally provides for the whistleblower to be awarded a share of between 15 percent and 25 percent of the United States’ recovery.
ResMed Corp. to Pay the United States $37.5 Million for Allegedly Causing False Claims Related to the Sale of Equipment for Sleep Apnea and Other Sleep-Related Disorders, published January 15, 2020, by Department of Justice, US Attorney's Office, Northern District of Iowa.
