CareFusion Corp. med tech company pays $40.1 to settle whistleblower suit over kickbacks and off label sales

Carefusion will pay $40.1 million to settle a government lawsuit and whistleblower allegations under the False Claims Act, that the company paid kickbacks to increase sales of its pre-surgical skincare product ChloraPrep.

In addition, the company is alleged to have promoted the product unlawfully for uses not approved by the FDA. In this situation it is alleged that it was marketed for pre-surgical treatment despite the fact that the FDA only approved it for preparation of a patient’s skin prior to surgery or injection.

The whistleblower in this case is Dr. Cynthia Kirk a former vice president of regulatory affairs. She will receive $3.26 million as her qui tam award pursuant to the False Claims Act.