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Medtronic Unit to Pay $75 Million to Settle Whistleblower Medicare Fraud Case
Date:5/22/2008

rick and Chuck Bates courageously came forward," said attorney Matthew Smith of Phillips & Cohen. "They also provided crucial assistance to the government in its investigation and pursuit of the case."

Phillips & Cohen filed the qui tam lawsuit in 2005 in federal district court in Buffalo on behalf of Patrick and Bates. Patrick, of Hudson, Wis., was a reimbursement manager for Kyphon, and Bates was a regional sales manager in Birmingham, Ala. Patrick left Kyphon after complaints he made about its sales strategy went unheeded.

The U.S. Attorney's Office (USAO) in Buffalo took the lead for the government on the case. "The successful outcome was due in large part to the work of the U.S. Attorney's Office and investigators from the Department of Health and Human Services," said attorney Cohen. "They did an impressive job in all aspects of the case."

In particular, Cohen recognized the work of Assistant U.S. Attorney Robert Trusiak, USAO investigator Peggy McFarland, USAO auditor Theresa Tetlow as well as Cindy Pangallo and Peggy Glynn, who are Department of Health and Human Services special agents.

Phillips & Cohen specializes in representing whistleblowers in qui tam lawsuits. Under the False Claims Act, private individuals can sue companies defrauding the government and recover funds on the government's behalf. Whistleblowers, known as "relators," are entitled to 15 percent to 25 percent of the amount recovered as a result of the lawsuit. For more information about Phillips & Cohen and qui tam lawsuits, see http://www.phillipsandcohen.com.


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SOURCE Phillips & Cohen LLP
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