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Abiomed settles US probe over kickback allegations related to heart pumps

Abiomed Inc. agreed to pay the U.S. government $3.1 million to settle allegations that it violated the False Claims Act by trying to influence treatment decisions of doctors.

The U.S. Department of Justice said the company tried to compel doctors to use its Impella heart pumps, which are priced at over $20,000 each, by buying them meals at expensive restaurants. The government also alleged that the company paid for "numerous" meals for doctors in which the cost per attendee went beyond Abiomed's $150-per-person guideline.

The Danvers, Mass.-based medical device maker entered the settlement agreement with the U.S. Attorney for the District of Massachusetts and on behalf of the Office of Inspector General of the Department of Health and Human Services and a whistleblower — a former company employee who filed the complaint.

In addition to the $3.1 million, the company will pay $30,000 of accrued interest to the U.S., plus $150,000 for the whistleblower's costs and legal fees.

Abiomed said the settlement was not an admission of liability and that it decided to settle to avoid additional significant litigation costs and remove related legal risks and uncertainty.