A former sales rep for Cardiovascular Systems (NSDQ:CSII) is suing the company, alleging that it ran a kickbacks and off-label marketing scheme to boost sales of its orbital atherectomy devices in violation of the False Claims Act.
The lawsuit, filed by ex-rep Travis Thams in July 2013 and unsealed this week, accuses St. Paul, Minn.-based CSI of inducing physicians to use its products by offering free, all-expense-paid training programs “followed by explicit demands by CSI employees that attendees use CSI products on future patients,” giving away product for free, 3rd-party referral channel marketing, and “sham Speaker Bureau payments for high-prescribers and others whom CSI sought to cultivate,” according to the complaint filed in the U.S. District Court for Western North Carolina.
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The lawsuit, filed by ex-rep Travis Thams in July 2013 and unsealed this week, accuses St. Paul, Minn.-based CSI of inducing physicians to use its products by offering free, all-expense-paid training programs “followed by explicit demands by CSI employees that attendees use CSI products on future patients,” giving away product for free, 3rd-party referral channel marketing, and “sham Speaker Bureau payments for high-prescribers and others whom CSI sought to cultivate,” according to the complaint filed in the U.S. District Court for Western North Carolina.
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