Pharmaceutical Corporation Settles Whistleblower Claim for $48.3 Million

Author: Marta Moakley, XpertHR Legal Editor

June 6, 2013

CR Bard Inc. (Bard), a New Jersey-based pharmaceutical and medical products manufacturer, has agreed to settle a False Claims Act lawsuit with the US Department of Justice (DOJ) for $48.3 million, with over $10 million of the settlement going to the former employee whistleblower who initially filed the court claim. United States ex rel. Darity v. C.R. Bard, Inc., et al., Civ. Action No. 1:06-cv-0208-SCJ (N.D. Ga.).

The DOJ intervened in the lawsuit originally filed by a former employee manager, who claimed that Bard had engaged in kickbacks to health care providers, which resulted in Medicare fraud. In addition to the monetary settlement, Bard will enhance its internal policies and procedures, including its code of conduct, to ensure future compliance with federal laws.

This settlement adds to the already record-breaking recoveries under the False Claims Act since January 2009. For this reason, employers should engage in best practices when managing employee whistleblowers and implementing corporate compliance programs.