Medical Devices – Lymphedema Pumps

In 1995 the Department of Justice reached a $4.9 million settlement with a New Jersey medical devices manufacturer, Huntleigh Healthcare, based on a qui tam case brought by Getnick & Getnick LLP alleging fraudulent marketing of lymphedema pumps. The qui tamsuit alleged that Huntleigh was selling lymphedema pumps to dealers for less than $500, and falsely claiming that it had design features making it eligible for reimbursement by Medicare as a top-of-the-range, $4,000 pump. In fact, the pump was the same as a low grade pump also manufactured by Huntleigh and eligible for only about $475 reimbursement. Our client, a Florida medical equipment supply company, was awarded 18% of the recovery. See Corporate Heroes for Uncle SamThe New York Times, December 3, 1995.

Two years later, a dealer in the lymphedema pump manufactured by Huntleigh Healthcare, Breathco, Inc. aka Jalopy Shoppe, Inc., paid $1.4 million in settlement of a case brought by Getnick & Getnick LLP on behalf of the same Florida company. Our client was also awarded 18% of this recovery. See “U.S. To Reward Whistleblower For Diagnosing Medi-fraud,” NJ Star Ledger, May 24, 1997.