Prop 65 Warning

Boston Scientific Corp. and its subsidiaries, Guidant LLC, Guidant Sales LLC and Cardiac Pacemakers Inc. (Guidant), have agreed to pay $30 million to settle allegations that Guidant knowingly submitted or caused the submission of false claims to the Medicare federal health program, the Justice Department announced yesterday. The government alleged that Guidant knowingly sold defective heart defibrillators to health care facilities that in turn implanted the devices into Medicare patients. 

The devices at issue are implantable defibrillators, which are used in patients at risk of cardiac arrest due to an irregular heartbeat.  The devices are surgically implanted into patients’ chests, and when the devices detect an irregular heartbeat, they send an electrical pulse to the heart to “shock” it back to its normal rhythm.  The government’s complaint alleged that two lines of implantable cardiac devices manufactured and sold by Guidant, known as the Prizm 2 and the Renewal 1 and 2, contained a defect that rendered the device ineffective.

Guidant allegedly learned as early as April 2002 that the Prizm was defective. Nevertheless, the company continued to sell its remaining stock of the old, defective versions of the devices.  The government alleged further that, as Guidant learned about the cause of the defect, it took steps to hide the problem from patients, doctors and the Food and Drug Administration (FDA). 

The lawsuit was originally filed by James Allen, a recipient of one of the defective devices, under the whistleblower provision of the False Claims Act.  The False Claims Act allows private parties with knowledge of fraud against the government to sue on behalf of the government and share in the recovery.  Allen will receive $2.25 million as his portion of the settlement.

The Chanler Group, in association with the Hirst Law Group, represents whistleblowers who take action under the False Claims Act to report fraud committed against the federal and state governments.  We have years of experience representing whistleblower clients who uncover fraud of every kind perpetrated against our government including, health care fraud, contract fraud, and tax fraud.  Read more about our expertise in False Claims Act cases and how you can take action.

Environmental law firm The Chanler Group, on behalf of its clients Peter Englander, John Moore, and Laurence Vinocur, has reached settlements with 35 furniture companies, including IKEA, J.C. Penney and Summer Infant Products, for violations of California’s Proposition 65.  As part of the settlement agreements, the companies have committed to reformulate their products in order to virtually eliminate the presence of the toxic flame retardants TDCPP and TCEP.  Furthermore, the companies have been assessed $2,340,700 in civil penalties, seventy-five percent of which are paid to the State of California to further protect and enhance public health and the environment.

“We’re very proud of our clients’ work,” said Cliff Chanler, founder of The Chanler Group.  “What they’ve done today is going to go a long way toward industry reform to remove these harmful chemicals from our homes and our bodies.”

The settling companies allegedly manufactured and sold common household items such as chairs, child safety seats and benches containing the flame retardant chemicals TDCPP and TCEP, which are known carcinogens, without first providing a consumer warning.  Proposition 65 requires companies offering products for sale in California containing chemicals known to cause cancer or reproductive harm to first provide consumers with a health hazard warning.  The Chanler Group’s clients continue to enforce the statute against dozens of additional furniture companies to ensure Californians’ right to know about harmful toxins in consumer products.

The Chanler Group represents citizen enforcers and whistleblowers to promote awareness of toxic chemicals found in our everyday environment and to enhance the health of the general public by advocating for the removal of chemicals known to cause cancer or reproductive harm from consumer products.  For more information, please visit www.chanler.com.