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CareFusion to pay $40.1M in false claims case

CareFusion Corp. has agreed to pay $40.1 million to settle allegations it paid kickbacks and promoted its medical technology products for uses not approved by the Food and Drug Administration.

The Justice Department announced the settlement Thursday with the San Diego-based company of a whistleblower lawsuit unsealed in U.S. District Court in Kansas.

The deal also resolves claims that CareFusion (NYSE: CFN) paid more than $11.6 million in kickbacks to a physician who co-chaired the Safe Practices Committee at the National Quality Forum, a nonprofit group that recommends health care practices.

Dr. Cynthia Kirk, a former CareFusion vice president, initially filed the whistleblower lawsuit under provisions of the False Claims Act. The Justice Department says her share of the settlement is $3.26 million.

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