A.G. Schneiderman Announces $306 Million National Settlement With Olympus Corporation

New York Medicaid Program To Receive Over $7.7 Million Dollars

   Attorney General Schneiderman announced today a joint settlement with the federal government and a coalition of states to resolve allegations that Olympus Corporation of the Americas paid illegal kickbacks to healthcare providers, in violation of federal and state False Claims Acts, including New York’s statute. The national settlement is $306 million, with the New York Medicaid Program receiving over $7.7 million dollars in damages.

Between January 1, 2006 and December 31, 2011, Olympus, a subsidiary of Olympus Corporation of Japan located in Center Valley, PA, used improper financial incentives to induce doctors and hospital executives to buy a wide ranging array of endoscopes and other surgical equipment manufactured by Olympus.  It was alleged that these improper financial inducements took the form of grants, fellowships, consulting payments, free trips, no charge loans for equipment along with other incentives. 

 “If you are a company that prioritizes profits over patients, we will hold you accountable,”Attorney General Schneiderman said. “Healthcare providers cannot make decision that are swayed by illegal kickbacks, and we are committed to ensuring that Medicaid recipients are receiving the best care possible.”

The matter was brought to the attention of the government through the filing of a qui tam lawsuit in the District of New Jersey.  (US ex. rel. John Slowik v. Olympus America, Inc. et al. 10-cv-5994 DNJ).  The Attorney General would like to thank Mr. Slowik for the information that he provided to the government.  The group representing all the states consisted of members from New York, California, Virginia, Indiana, Delaware and the District of Columbia.

Meghan Collins, Associate Special Auditor Investigator, of the Medicaid Fraud Control Unit’s Civil Enforcement Unit, represented New York on the team. Stacey Millis is the Chief Auditor for the Civil Enforcement Division of the New York Medicaid Fraud Control Unit. The New York Medicaid Fraud Control Unit is led by Director Amy Held and Assistant Deputy Attorney General Paul Mahoney.  The Criminal Justice Division is led by Executive Deputy Attorney General Kelly Donovan.