NuVasive shareholders win class action cert in alleged kickback case

This article was originally published here

A federal court this week certified a class of NuVasive Inc. (NSDQ:NUVA) investors in a suit alleging that the company lost share value after it hid a kickback scheme.

A judge in the US District Court for the Southern District of California this week granted a motion for class certification, appointing Brad Mass and Daniel Popov as class representatives, according to court documents.

The class action suit is on behalf of investors who purchased shares in the company between Oct. 22, 2008 and July 30, 2013.

Plaintiffs in the suit allege that NuVasive submitted false claims to Medicare and Medicaid in violation of state laws and regulations, and that the company made illegal kickbacks to doctors and engaged in off-label promotion of its products and services, according to court documents.

NuVasive paid approximately $13.5 million in fines and penalties related to the alleged actions, according to the plaintiffs, while shareholders “suffered significant losses and damages,” according to court documents.

The payment dates back to 2015, when the company finalized a previously announced deal with the Justice Dept. NuVasive said in July 2013 that the U.S. Health & Human Services Dept.’s inspector general issued a subpoena “in connection with an investigation into possible false or otherwise improper claims submitted to Medicare and Medicaid” for documents from January 2007 through April 2013. In April the company said it agreed to pay $13.8 million to settle the probe.

On July 29, 2015 NuVasive said the deal called for it to pay $13.5 million, plus fees and accrued interest, but admitted no wrongdoing in the case.

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply