A medical device manufacturer and a subsidiary have agreed to pay $ 38.7 million to resolve allegations that they are violating the False Claims Act by invoicing and getting others to invoice, the Medicare Defective Test Devices Program, said the U.S. Department of Justice on Thursday.
The settlement resolved allegations that from 2008 to 2016, Alere Inc. and Alere San Diego Inc. deliberately sold fast test devices, INRatio blood coagulation monitors, used by Medicare recipients taking anticoagulant drugs such as warfarin.  Alere was acquired by Abbott Laboratories 2017.
Alere has known since at least 2008 that the software algorithm used in each version of its INRatio monitors contained a significant defect, the Justice Department said in a statement.
"Patients and caregivers rely on diagnostic units to provide reliable health information," Deputy Attorney General Brian M. Boynton of the Department of Justice's Civil Division said in a statement.
"The Department of Justice will hold responsible medical technology companies knowingly sells defective products that could harm patients and waste taxpayers' dollars. "
An Abbott spokesman could not be reached for comment.
The Department of Justice said Tuesday that an airline and its subsidiaries will pay $ 1