Shareholders revived a purported class-action kickbacks lawsuit against Cardiovascular Systems (NSDQ:CSII) that was dismissed without prejudice earlier this year, citing in the new complaint a $25 million judgment against the company in a related case.
St. Paul, Minn.-based CSI paid $8 million to settle a federal False Claims Act suit in July 2016 that accused it of running a kickbacks program 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 a complaint filed by Travis Thams, who worked for CSI as a district sales manager from 2012 to 2013. The Tham lawsuit also accused the company of running an off-label promotion scheme to push sales of its unapproved 4 French catheter.
