Bard Lawsuit Ends in $17 Million Settlement Over Kickback Allegations

There are serious legal consequences to violating the False Claims Act (“FCA”), particularly in cases involving illegal kickbacks in the healthcare industry, as demonstrated by the $17 million Bard fraud settlement. This settlement resolved allegations that C.R. Bard, Inc. and its affiliates provided unlawful incentives to urology practice groups to influence medical device prescriptions. The lawsuit alleged that Bard and its subsidiaries improperly offered discounts, free samples, and cost-saving benefits to persuade physicians to use Bard’s proprietary prescription forms for prescribing intermittent catheters.  

What Employers and Employees Need to Know 

The Bard lawsuit underscores key compliance issues for employers and employees in the healthcare industry. Employers must adhere to federal laws such as the FCA and Anti-Kickback Statute and should avoid improper incentives that could lead to legal and reputational risks. Implementing audits, training, and compliance checks can help prevent violations. Likewise, understanding whistleblower protections is essential to avoid retaliation penalties.

Employees should stay vigilant for fraudulent practices such as kickback schemes or false billing and report concerns internally or to authorities. Understanding whistleblower protections and entitlements is equally important—if not more so—for employees, as they are taking a courageous step in exposing fraud and are entitled to protections and compensation for assisting the government in holding violators accountable. 

Recognizing and Preventing Healthcare Fraud 

Healthcare fraud can take many forms, including: 

• Kickback schemes that involve payments or incentives to influence medical decisions. 

• False claims submitted for unnecessary procedures, tests, or prescriptions. 

• Billing fraud involving providers overcharging for services and/or misrepresenting treatments. 

• Self-referrals involving providers improperly directing patients to receive services from other providers in which they have a financial interest. 

Steps to Take if You Suspect Healthcare Fraud 

If you suspect fraudulent activity in a healthcare setting, there are several actions you can take to protect yourself and help hold violators accountable: 

• Document evidence: Keep records of suspicious transactions, communications, or policy changes that indicate fraud. 

• Report misconduct: Healthcare fraud can be reported to the U.S. Department of Health and Human Services, the Department of Justice, or your state’s Medicaid Fraud Control Unit. 

• File a whistleblower lawsuit: Under the FCA’s qui tam provision, private individuals (whistleblowers) can file lawsuits on behalf of the government and receive a portion of the recovered funds. 

• Seek legal counsel: Consulting with experienced attorneys can help you understand your rights and the best course of action. 

What Potential Whistleblowers Need to Know

The new administration has signaled its intent to aggressively pursue FCA cases, which could lead to a surge in whistleblower claims in the coming years. Whistleblowers, also known as relators in qui tam cases, play a critical role in uncovering fraud and are afforded strong legal protections under the FCA. The law prohibits employers from retaliating against employees who report misconduct, ensuring that individuals who expose fraud cannot be demoted, fired, harassed, or otherwise discriminated against for their actions.  

If retaliation does occur, whistleblowers may be entitled to remedies such as reinstatement, double back pay, and compensation for legal fees, as the FCA provides a direct cause of action for whistleblowers to sue for damages. Additionally, successful whistleblowers can receive a percentage of the recovered funds, providing a financial incentive for coming forward. With increased government scrutiny on fraud enforcement, healthcare employees, and others in regulated industries, should know their rights and protections when reporting unlawful practices.