LITTLE ROCK – Attorney General Leslie Rutledge announced Monday that Arkansas, as part of a national settlement, has resolved allegations that Avalign Technologies, Inc. and its subsidiary Instrumed International, Inc. (“Defendants”) violated the Federal and State False Claims Acts. The companies were buying and selling medical devices that were not approved or cleared by the FDA. These unapproved devices were then used by medical providers in medical procedures, and the providers submitted claims for reimbursement to Medicaid. As a result, the Defendants paid the participating states and federal government $9.5 million, of which Arkansas received $76,393.54.
“These companies not only cost government Medicaid programs money, but put patients’ lives at risk,” said Rutledge. “The FDA plays a critical role in keeping us safe and ensures, through its approval process, that Medicaid funds are spent appropriately and effectively for the betterment of all Americans and Arkansans.”
The United States, Arkansas and other participating states had previously reached a settlement with CareFusion in which CareFusion agreed to pay a total of $3.3 million to the United States and participating states. The company admitted to selling devices that Instrumed wrongly claimed qualified for the pre-amendment exception to FDA regulations. Arkansas received $26,536.70 in the CareFusion settlement.
Arkansas’s recovery through the national multi-state settlements announced Monday was $102,930.24.
The suit was filed in the US District Court in the Southern District of New York. A National Association of Medicaid Fraud Control Units (NAMFCU) Team conducted the settlement negotiations with the Defendants on behalf of the states.
Arkansas joins the lawsuits along with Alabama, Arizona, California, Colorado, Connecticut, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin and Wyoming.