Allergan agrees to settlement in alleged defective Lap-Band case
News: 2018 Press Release
"Medical device distributers and health care providers have an obligation to place patient safety ahead of profits," said Insurance Commissioner Dave Jones. "Concealing information about defective equipment and using misleading marketing practices puts patients' health at risk."
The Lap-Bands Allergan sold allegedly had defective access ports used in the implantation process on the patient—the company then concealed the defects by misrepresenting the cause of leaky ports to the FDA, the public, and health care providers.
Additionally, Allergan allegedly provided kickbacks in the form of sham advisory boards, speaking fees, proctoring events, surgeon workshops, and travel-related expenses. The kickbacks were provided to health care providers as inducements for performing unnecessary medical procedures, including banded imbrication where the stomach is folded and sutured.
On behalf of the State of California the commissioner recovered $500,000 from the settlement. In a separate settlement agreement, Allergan agreed to pay $3.5 million to the federal government for similar allegations involving Medicare fraud. The company does not admit wrong doing in either settlement.
The California Department of Insurance, established in 1868, is the largest consumer protection agency in California. Insurers collect $310 billion in premiums annually in California. Since 2011 the California Department of Insurance received more than 1,000,000 calls from consumers and helped recover over $469 million in claims and premiums. Please visit the Department of Insurance website at www.insurance.ca.gov. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.