This post is from the non-Reed Smith side of the blog.
Modglin v. DJO Global Inc., 2015 U.S. Dist. LEXIS 60812 (C.D. Cal. May 8, 2015) is one of those cases that has so much good stuff going on, we just want to dive right in. It is the complete dismissal with prejudice of an attempt to state a False Claims Act (“FCA”) case against the manufacturers of Pre-Market Approved (“PMA”) bone-growth stimulators based on allegations that the manufacturers were aware their products were being used off-label – a fact they failed to disclose to Medicare and other federal healthcare plans when submitting claims for reimbursement. We’ve got allegations of fraud, connected to off-label promotion, surrounding a PMA medical device and all tied up in a dismissal with prejudice. It’s like package wrapped in shiny paper with a big red bow on top. As pretty as the trappings are, we’re still going to rip them off to see what’s inside. And we don’t think you’ll be disappointed.
Relators’ specific allegations are that defendants requested reimbursement for stimulators approved for lumbar spine use when they knew that the stimulators were being used with the cervical spine – an off-label use – which they claim is not allowed. Id. at *25. So, what is allowed? Under the Medicare Act, to be reimbursed, the device must be “reasonable and necessary” for diagnosis or treatment. Id. at *13. The Department of Health and Human Services (“HHS”) has decided that PMA devices generally can be reimbursed. Id. at *15. So far so good for stimulators.Continue Reading California Federal Court Gets Tough on Off-Label Promotion FCA Claims