Settled Case of Predatory Cochlear Implant Marketing Raises Fears on AB2072 Agenda

July 5th 2010

By: Juda Engelmayer

The United States Department of Justice has announced the settlement of a case that will come as no surprise to many who have been following the story behind the Colorado based manufacturer, Cochlear Americas. The whistleblower case, brought forth by the company’s Former Chief Financial Officer Brenda March in 2004, raised allegations of kickbacks and schemes to promote itself over its competitors. Under the set of rules known as the False Claims Act, Cochlear Americas was charged with paying physicians to prescribe the use of Cochlear’s devices which would ultimately be reimbursed by taxpayers through Medicare and Medicaid benefits. In the settlement, Cochlear Americas agreed to pay $880,000 to resolve the issue. (More)