MINNEAPOLIS (CN) – Medtronic inflated its share price by failing to disclose kickbacks paid to doctors for off-label use of a bone-growth product, shareholders claim in Hennepin County Court. The Infuse Bone Graft had FDA approval only for use in the lumbar area of the spine, but “Medtronic marketed, promotes, and gave physicians kickbacks for their use of Infuse for non-FDA approved, or off-label uses,” the complaint states.
“While it is not illegal for doctors and surgeons to use medical devices as they see fit, manufacturers, such as Medtronic, are prohibited by law from marketing or promoting medical devices for non-FDA approved or off-label uses,” the complaint states.
Plaintiffs claim Medtronic issued a series of false and misleading financial statements, in press releases and SEC filings. They demand punitive damages. Plaintiffs are represented by Carolyn Anderson with Zimmerman Reed.