Disposable products developer Merit Medical Systems has reached an agreement in principle with the U.S. Department of Justice (DoJ) to resolve an investigation into marketing and promotional practices.
Merit's former chief compliance officer Dr. Charles Wolf accused the company of engaging in a scheme in which Merit allegedly paid advertising and consulting fees to physicians to induce exclusive use of the company's medical devices, according to a release filed by his attorneys.
The DoJ said that Wolf first brought his claims to the company's attention, but "to no avail," according to the agency. This prompted him to resign and contact the Department of Justice, which resulted in a False Claims Act lawsuit, according to the release.
Merit denies the allegations but is expected to pay $18 million in connection with the resolution. Additional settlement details will be released after documents are finalized.
