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Smith & Nephew to Pay $11.3 Million in Whistleblower Case

Jaclyn Jaeger | September 11, 2014

London-based medical device maker Smith & Nephew agreed last week to pay $11.3 million to resolve a False Claims Act whistleblower lawsuit.

The settlement, filed Sept. 4, resolves a whistleblower complaint, USA v. Smith & Nephew, filed in 2008 in the U.S. District Court for the Western District of Tennessee by Samuel Cox, a former Smith & Nephew employee. Cox filed the lawsuit under the FCA’s whistleblower provisions, which permit individuals who discover fraud to file claims on behalf of the government and to share in any recovery.

Cox will receive $2.3 million for the tips he provided. The government will receive $6 million, and $3 million will go toward attorneys’ fees.

According to the complaint, Smith & Nephew violated the Trade Agreements Act (TAA), which requires government contractors to certify that they will only sell products to the government that originate in the United States, or a country that has signed a trade agreement...

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