Abbott Laboratories is settling the case involving its two units, Arriva Medical LLC and its parent company Alere Inc. The American medical devices and health care company headquartered in Illinois will be paying $160 million to resolve the said units’ kickbacks and false claims cases.
The settlement stemmed from the allegations that Arriva Medical and Alere Inc. submitted untruthful claims to Medicare, a government health plan, by offering kickbacks to diabetes patients. According to the U.S. Department of Justice, some of the things they offered include free glucose monitors.
Reuters reported that the settlement was done on Monday, Aug. 2. This will resolve claims that Arriva Medical and Alere violated the country’s False Claims Act from 2009 to 2016 by transferring Medicare funding from where it was needed.
The U.S. DOJ stated that Arriva gave away glucose monitors at no cost to persuade patients to place orders for more testing supplies. It was added that Arriva also typically waives co-payments. It was further alleged that the company has been systematically charging Medicare for glucose monitors that were handed out to ineligible patients, plus submitting claims for 211 patients who were already dead for at least two weeks.
Gregory Goodman, the whistleblower of the scheme, worked at Arriva call center in Tennessee, and he will be getting $28.5 million from the settlement. Then again, despite the settlement, it was reported that the defendants did not admit liability.
"Doing anything that defrauds the government or the Medicare program, it's fellow Americans who end up paying for it," Goodman said. "The decision to move forward was quite simple."
According to the Tennessean, the now-retired employee knew something was not right when he took a call center job at Arriva almost 10 years ago. Prior to his stint at the medical supply company, he has been an account executive for investment firms.
He had little experience in the healthcare industry, so when he noticed that something was off, he did some research. Goodman explained he thinks the way the firm was driving customer service reps to sell those glucometers and waive co-payments was not normal. With this week’s settlement, it was proven that Abbott’s unit really did something wrong.


BCA Research Warns U.S.-Iran Ceasefire Could Collapse, Maintains Cautious Equity Outlook
Gold Prices Rise on Weaker Dollar and Ceasefire Hopes
Anthropic Fights Pentagon Blacklisting in Dual Federal Court Battles
China's Factory-Gate Prices Rise for First Time in Over Three Years Amid Global Cost Pressures
Colombia and Ecuador Trade War Escalates With Retaliatory Tariffs
Goldman Sachs, ANZ Cut Oil Forecasts Amid U.S.-Iran Ceasefire Hopes
U.S. Futures Slip as Iran Ceasefire Uncertainty and CPI Data Weigh on Markets
Chinese Brands Are Taking Over Brazil — And It's Just Getting Started
U.S. Natural Gas Market Faces Short-Term Pressure but Long-Term Demand Surge
Bendigo and Adelaide Bank Posts Strong Q3 Earnings, Announces AI-Driven Job Cuts
U.S. Automakers Push Back Against EU Rules Blocking American Trucks from European Market
Dollar Stabilizes Amid Fragile US-Iran Ceasefire as Markets Watch Hormuz Strait
Alibaba Shares Slide as Jefferies Slashes Price Target Over AI Spending and Business Losses
Kia Cuts EV Sales Target for 2030 Amid Slowing Demand and U.S. Policy Shifts
Foreign Investors Pour $18.65 Billion into Japanese Stocks Amid Market Stabilization
Asian Currencies Hold Steady as Middle East Ceasefire Doubts Weigh on Markets
Pony.ai, Uber, and Verne Launch Europe's First Commercial Robotaxi Service in Zagreb 



