A 'Shakedown' by the Feds in Case of Minnesota Medical Device Maker?

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May 02, 2016

Forbes/Southeast Texas Record reports on the case of Minnesota medical device maker Vascular Solutions, which spent $25 million in defense costs to successfully fight a U.S. Justice Department indictment over off-label marketing allegations — after the company had already offered a $520,000 settlement.

In addition to the defense costs, the company faced “mandatory exclusion from participation in federal health care programs” if it had been convicted. 

“I don’t like to use the word ‘shakedown’ … but any time one side has tremendous leverage and the matter is not subject to review by a court, as most of these settlements are not, there is the potential that there may be some results that do not completely reflect the actual merits,” said the company’s attorney, John Richter, a former U.S. Attorney.